Fuel Surcharge

It's a route based FSC. Average price of fuel on the route compared to national/regional base. Pay the monthly fee's to OPIS and you'll have the prices.

 

OPIS (http://www.opisnet.com) is a company that sells information about oil prices, hence the name Oil Price Information Service. OPIS price information is proprietary so you have to pay to get it.

There are many variables as to which number the shipper is using (price average for the lane, price average for a geographic area, retail average, rack average, high average, low average, closing price). Ultimately the price should be the average fuel cost for you to cover the shippers loads as long as your truck gets the same, or better, fuel mileage they are using for the FSC calculation. You will have to ask the shipper about the numbers they're using (which OPIS number, as just mentioned their is more than one).

You could also check their number against another source for price averages and see if it makes sense.

 

Add on: It really doesn't matter what the shipper says or is offering either........You can get on the governments Energy Information website and see prices by region, wholesale etc and calculate to your lane. You can get on Big R's website and see what he's charging for a TL. It was high the last time I looked.

Bottom line here is the bottom line.....whatever he's offering has to be your cost per mile plus profit at your fuel mileage and the FSC has to meet the expected pricing along your route. I know some like to use their mpg's like 6 0r 7 when doling out the FSC........ BS!

Currently the FSC for tankers in the south is 33% of the linehaul...flat fee. California excepted. ( No travel there )

Good luck.....
JMO

 

It absolutely matters what the shipper says or is offering. It's a critical part of the deal and it's the party the original poster is making a deal with.

The OPIS number and the US DOE number probably aren't the same and if they're using an average for a state or a lane the DOE won't be of any help because DOE only breaks down averages by region. Also DOE numbers are only published every Monday. OPIS can be daily and may use different sources for its data. The best thing for the original poster to do is to ask the shipper since that is who will have the answers in this case.

The shipper does not have to pay a FSC at the trucks fuel mileage. They can use any number agreed to. The most common number for the industry right now is probably six miles per gallon. A percentage of linehaul isn't a fuel surcharge because it doesn't compensate for fuel price fluctuations, although you can agree to be paid in any arrangement you and the other party agree to.

 

You didn't read my post correctly.....

 

I remember back in the 90's when the fuel charge started because of the rise in fuel prices. The big talk back then was. Is the company skimming the FSC or not? I now drive a truck for a guy that has no idea of trucking but wants to grow to 10 trucks. Since we pull all of our runs off of DAT and Trucker Internet we deal exclusively with the broker.
My question is, are the brokers getting a fuel surcharge? And if they are, are they required to pass that on to the truck?

 

You're working on an all in rate. Which would make you feel better? 2000.00 all in or 1500.00+500.00 FSC? Your carrier should be breaking out a company FSC so you're not paying them a % of it. Same as for extra picks/stops, detention, ect.