Fuel cost

Not to sidetrack... But what is a Fuel Surcharge? What does it mean? I am a company driver and I use a comm data card to fuel. They don't care where I fuel or how much it costs... But what does it mean to people that own or lease?

 

Carriers and shippers had a hard time in the past pricing rates with wildly and quickly fluctuating fuel prices. Shippers had a right to be angry who felt like carriers were ripping them off with higher rates each and every week, and carriers could not continue to eat higher fuel costs, so the carriers begen setting a rate based on fuel [nat'l avg] being $#.##/gal, then any amount currently over the base price at the time of rating the shipment was factored in on some sort of preset scale as a "fuel surcharge" to be tacked onto the bill, over and above the base rate. For a long time shippers balked at paying this, but now, it's pretty much standard.

A load is rated one-time spot rate (no fuel surcharge) or their "regular rate + surcharge of x". Having a surcharge system in place from a carrier, a shipper can be quoted $2.00 mile + surcharge scale over x, and the shipper can have a fairly reasonable idea the shipment is going to be moved at a known price, depending on the weeks fuel average which is published for all to see. The x is typically set in the $2.50/gallon range from what I've managed to gather here and there.

 

Thanks STexan!!!! Much appreciate the info!

 

Depends what gas station you are at. Or miles you do.