Fuel Surcharge

I'm seeing between .28 and .32

 

How your carrier calculates FSC should be clearly spelled out in your lease agreement, and most are based on this published data:

http://www.eia.gov/petroleum/gasdiesel/

 

How do you figure? ... Using OOIDA's recommended baseline, an average mpg of 6 and last weeks national fuel average, the calculator spit out .055 cpm

As another stated, the baseline and mpg used for the calculation should be in your contract ... if it isn't why did you sign up for a lease if you didn't know what your revenue was going to be?

 

Every carrier is different. With fuel prices dropping, I see rates between .25- .30 for the larger carriers. The reason being you should also be getting between 30-50 cent per gallon discount on your fuel purchase. Some carriers that can't get that bulk discount tend to pay a higher fuel surcharge.

 

Uh? ... I'm not sure you're using the calculator right ... at 8 mpg, a current average of $2.83, the most the FSC could be is .35 cpm, with a base of $0 - and your contract base is probably more like $1.25 to $2.00. Which would be a FSC between .10 to .20 cpm.

 

Hi guys, I'm a heavy hauler in the New York city area. Most of the companies we haul for don't even pay a fuel surcharge. But the ones that do, don't seem to be paying enough. Can anyone tell me how, to calculate FSC based on a trailer load of 120,000 pounds gross weight regardless of mileage? We haul each load from point A to point B, nothing in between.

 

There is no standardized FSC formula. It's something that you negotiate for contract freight. I've heard that many carriers negotiate a FSC that keeps the actual cost of the fuel to $1.00/gallon, based on a certain mpg figure such as 5mpg. So the baseline of $1/gallon at 5mpg would come to $0.20/mile. If the acutal fuel price is $3.00/gallon, that would have your fuel cost at $0.60/mile, for a difference of $0.40/mile. So your FSC would be $0.40/mile with the fuel price at $3.00/gallon, in order to keep your effective fuel cost level at $0.20/mile. The FSC would change with fuel prices. Contracts would generally have terms that specify a standardized average published fuel price to be used for the calculation, along with an MPG figure, and at what intervals the fuel price is selected to be used for the calculation.

If you're quoting freight rates on a per-load basis, then FSC will not usually apply, as you'd be taking fuel price into account when quoting your rate. FSC is typically only used for contract rates.