How do you determine the “base fuel cost”? I saw a forum from 2014 using $1.25. Also, once you calculate the fuel surcharge, do you just tell the broker that you will need a fuel surcharge of, say, $0.49 per mile? How do you phrase it?
How to charge for fuel surcharge?
Discussion in 'Freight Broker Forum' started by PE_T, Jun 26, 2018.
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You don't charge a fuel surcharge. That's for trucks on a contract. Your rate with a broker in general won't have a fuel surcharge just a straight up rate.
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As per above
Unless it’s contract freight, there really isn’t fuel surcharge in the spot market. It is built in to the rate. So when you quote load, just add the fuel surcharge to it which will give you more negotiation roomPE_T Thanks this. -
Yeah but doesn't the broker get the fuel charge from the shipper? Because I'll see on the DAT rate sheet that an average rate for a particular lane might be $2.10, NOT INCLUDING FUEL SURCHARGE. So if the broker posts this load at $1.90 let's say, what happens to the fuel charge?
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bacoman, Scooter Jones and PE_T Thank this.
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1. You bid on a contract for a years length and you price the line haul, knowing how much their fsc pays on top. All companies have their own fsc charts but they all are based on the national average of the price of diesel.
2. You price the line haul knowing what the fsc is but as part of an ongoing bidding system. If your the lowest you get offered first, if your the highest you get offered last.
3. You give your customer flat rates for each lane and update the prices from time to time to try and stay competitive so others don’t come in and earn the business.
4. Customer emails and needs something moved. You quote it flat rate and they say yes or no.
Number 1 is normally the massive companies and my least favorite. You can lose your rest if your not careful or risk losing the customer. I’ve known brokerages who were losing a couple hundred per load on certain lanes in order to not lose the customer as a whole. No way to do business IMO but happens everyday.
Number 2 normally is large customers but maybe 1 location that ships hundreds of loads vs multiple locations that ships thousands. It’s an ok system but can be annoying as it’s hard to get into a rythem with carriers because your not consistently getting the freight. If your the cheapest and get it every time no carrier is going to consistently want to haul it anyway.
Number 3 is normally smaller shippers but still ship quite a few loads. Maybe dozens vs hundreds. This is my favorite and where loyalty and trust is there and counts between each party. Less about dollars and cents but more about service.
Number 4 is normally small shippers or shippers that expedite a lot and don’t have any rhyme or reason to when it needs to go. It just does and you better get it moved and not mess up. Normally they have a handful of people they email and the person who gets it covered first and for a semi reasonable price wins.
That’s been my experience. I don’t even attempt to work with the 1’s anymore. The 2’s we have a couple but don’t focus to heavy on. The 3’s and 4’s I love and our all our energy into those.Dino soar, gokiddogo, TallJoe and 1 other person Thank this. -
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Only time I get those is when the 3’s Have messed up and their customer is upset. Get it there yesterday type of thing.
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