How Do You Figure Fuel Surcharge?

Discussion in 'Ask An Owner Operator' started by thiczle, Feb 8, 2022.

  1. wichris

    wichris Road Train Member

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    Most of your contract freight the fsc is adjusted every monday when the new DOE averages come out.
     
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  3. thiczle

    thiczle Bobtail Member

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    ok great. so the actual base rate is $1.25 gallon.. this is good info because i want to charge the fuel surcharge, but was gonna use the base rate of $3 a gallon. i initially thought that because i am a newer company i should have used the cost of fuel when i first got in. this def helps, so its basically industry standard to use the $1.25 gallon, and i shouldnt have any push back when i use this as the base. thank you for helping out
     
  4. thiczle

    thiczle Bobtail Member

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    I am confused on this myself. if fuel is $4 a gallon, you run 1000 miles @10mpg is 100 gallons of fuel which is gonna cost $400 at the pump.
    load pays $5000 - 20% comission =$4000 so if the fuel surcharge comes in at .30 a mile, that = $300
    so the way i figure is im gonna get $4000 for the load, and $300 fuel sc which= $4300. way diff than $4080. what am i missing?
     
  5. skallagrime

    skallagrime Road Train Member

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    Because you dont get 80% of 5 k, you get 80% of 4700, fsc gets backed out before they take their %.

    Pay to you =
    1$ BASE
    ((5000-300)*.8)+300 = 4060
    OR no BASE
    ((5000-400)*.8)+400 = 4080

    As it turns out, i talked with dispatch (he does the rates too) and the reason i lose $ is because i get full 100% fsc, but its based on national fuel cost and mpg, so the nat cpm fuel is lower than my actual cpm fuel, im above average in my fleet but below average nationally
     
  6. thiczle

    thiczle Bobtail Member

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    still doesnt seem right to me. the way i understand it is. you should be paying $1 a gallon, but you are paying $4 a gallon. so the way i understand it is the shipper has to make up the difference which is $3 per gallon. so if you pay $400 at the pump and get 10 mpg then that is a $300 difference 80% of 5000 is 4000. $4000+$300 = 44300
     
  7. flood

    flood Road Train Member

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    Well most loads pay load pay PLUS fsc.. so a 1000 mile load the load pay is $5,000 @ 80% = $4,000 plus fsc...
    FSC is based on national average price of diesel (last week $3.951)
    The math for doing fsc is avg price - $1.25 = $2.701..... $2.701= .06 (avg mpg of avg truck) = 45.01 round down to nearest hole cent. = fsc of .45cpm
    So you pay for that $5,000 load after their 20% cut plus fsc should be $4,450... and if they say the $5,000 includes the fsc then take the $5,000 - fsc of $450 = $4,550 -their 20% = $3,640 then add the fsc (you get 100% of fsc) = $4,090
     
  8. skallagrime

    skallagrime Road Train Member

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    You have described it using a base price, but then unneccessarily RE-complicated things by using last weeks real numbers.

    Im done, just done, it doesnt matter, move on
     
  9. thiczle

    thiczle Bobtail Member

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    LOL> believe it or not, i understood exactly what he was saying.
     
  10. thiczle

    thiczle Bobtail Member

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    now i understand what you are saying. thank you
     
    flood Thanks this.
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