fsc

FSC was implemented some years back when fuel prices started skyrocketing faster than companies could make adjustments. For years, fuel was fairly steady and shippers offered rates based on fuel costs. Any business person wants to project shipping costs well in advance. So, the powers that be implemented a fuel sur charge to be adjusted weekly either up or down depending on how much fuel went up or down. Weekly adjustments were apparently the best they could come up with, even though fuel could spike daily at times. I believe the energy dept. calculates how much the FSC should be based on an average MPG normal trucks get. It is not an exact science, but, should just about compensate for the added expense. FYI, FSC is suppose to go to the trucking company/O/O 100%, but some brokers manipulate the figures so they put more money in their pocket. Somewhere in cyberspace, there is a formula for O/O's to figure how much to charge for FSC if quoting a rate for a shipper direct.