how does the fuel surcharge work?

A reputable company would charge and pass it all to you as a lease operator.
Alot of companies charge it , slice off the top & give you what they feel like.

 

In general.......

You take the current national fuel cost average, currently $3.969. You have a base fuel cost, most often $1.25. Subtract $1.25 from $3.97... $2.72. Divide $2.72 by whatever fuel mileage base you are using, in thiscase we'll use 5.5mpg. That gives you a FSC of $.49/mi.

 

And some carriers like mine steal it from you and make you pay the base fuel price..... ( my carrier posted a 3.2M FSC profit on 75 trucks in 2012 ) or the cut the rates and sub back with FSC dollars to equal a competitive rate......

Or they completely steal it and make you pay pump price. There is no law to force a carrier to pass it through at this time......but I tell every shipper I don't get it ....

And / or they use an unreachable FSC MPG like 7 or so and pay off that......

JME

 

Oh...forgot one....I got called in the office for poor mpg's..... ahh what!? Yep, he was #### me out for poor mpg's....... so I said wait a minute, you don't pay my fuel so you have no ####! He said yes I do! I said no you don't, I pay the base $1.25 plus Comdata admin fees ( swipe charges ) and the customers pay the rest......so your #### because there's not enough to steal ??????

He was very quiet after that.......I think I confused him with the truth.........

 

There are no regulations regarding how a fuel surcharge is passed on to an owner-operator. And every company seems to have a different formula. It should be one of your first questions at any inquiry of a prospective lease. It can easily make or break you.

 

That's because it is a rip off . These companies don't kiss you because they love you they kiss you because they are screwing you !!!!!