Does carrier have a right to a peice of fuel surcharge

Mar 12, 2022 at 08:54 PM CST + 12 - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I have trucks working for another carrier on handshake. All was well until there is a fuel surcharge. Now they want a percentage of the fuel surcharge. I think it should be all mine as I pay the fuel on my credit. Thoughts? Art Pfluger

Replied on Mon, Mar 14, 2022 at 07:02 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Whoever actually pays for the fuel should get the surcharge. If you pay the credit bill, but then deduct O/O fuel out of his settlement, the O/O should get the surcharge. If you buy all the fuel for the O/O, then you should get it.

Replied on Mon, Mar 14, 2022 at 07:02 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I understood the old ICC rules where whoever bore the expense of the fuel were to be paid 100 percent but not sure how or if the DOT will enforce those old rules

Replied on Mon, Mar 14, 2022 at 10:27 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. If you use the carrier's fuel card and they carry the balance for a week or two,that probably entitles them to a piece of it. If you use your own fuel card or credit card, it should be all yours.

Replied on Mon, Mar 14, 2022 at 10:27 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. He who pays for the fuel should get the all of the surcharge. Even if the fuel is purchased through someone else's fuel account and the fuel is withheld from your settlement, you should get the surcharge. While I'm sure it happens, It's unreasonable to me that anyone else should even get a piece of it..

Replied on Mon, Mar 14, 2022 at 11:37 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I've always wondered how you figure out what the fuel surcharge should be, what is the base$

Replied on Mon, Mar 14, 2022 at 11:37 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I pass on 100% of the fuel 100% of the time.

Replied on Mon, Mar 14, 2022 at 02:11 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "I've always wondered how you figure out what the fuel surcharge should be, what is the base$" There's the question. The government's recommended schedule is based on $1.25 per gallon and 6.3 mpg. We haven't seen $1.25 per gallon fuel since March of 2002. I have never liked the fsc. What's fair? Percentage or mileage? Percentage, is it a good base rate or a poor base rate? Mileage, who pays for the deadhead miles? I've implemented fsc a few times in the past and I'm doing it again. Most of my customers live and breathe by the ton, so I created a system that adjusts in $1.00 ton increments for whatever $$ per gallon change in fuel price. Different for each lane. A couple of reasons why someone would want to use the government base. As a shipper they know once the base goes up it rarely goes down. So keep the fsc loaded. In some rare cases a carrier that pays percentage wants the fsc loaded because the drivers percentage is figured on the base rate. Where should the base be? You'll have to look into you OWN crystal ball for that. I have good relationships with my customers and I appreciate their business.

Replied on Mon, Mar 14, 2022 at 02:11 PM CST

Posted by a private BulkLoads.com member.

Quote: "I've always wondered how you figure out what the fuel surcharge should be, what is the base$"

There's the question. The government's recommended schedule is based on $1.25 per gallon and 6.3 mpg. We haven't seen $1.25 per gallon fuel since March of 2002. I have never liked the fsc. What's fair? Percentage or mileage? Percentage, is it a good base rate or a poor base rate? Mileage, who pays for the deadhead miles? I've implemented fsc a few times in the past and I'm doing it again. Most of my customers live and breathe by the ton, so I created a system that adjusts in $1.00 ton increments for whatever $$ per gallon change in fuel price. Different for each lane.

A couple of reasons why someone would want to use the government base. As a shipper they know once the base goes up it rarely goes down. So keep the fsc loaded. In some rare cases a carrier that pays percentage wants the fsc loaded because the drivers percentage is figured on the base rate.

Where should the base be? You'll have to look into you OWN crystal ball for that. I have good relationships with my customers and I appreciate their business.

Replied on Mon, Mar 14, 2022 at 02:11 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "I've always wondered how you figure out what the fuel surcharge should be, what is the base$" First you need to look at this to calculate your base. Do you base your rates on last years fuel cost or 6 mos ago? Once you know that, look here: https://www.eia.gov/petroleum/gasdiesel/ to find your base cost. Take a look at this: https://www.ooida.com/trucking-tools/fuel-surcharge-calculator/ Hope this helps.

Replied on Mon, Mar 14, 2022 at 02:11 PM CST

Posted by a private BulkLoads.com member.

Quote: "I've always wondered how you figure out what the fuel surcharge should be, what is the base$"

First you need to look at this to calculate your base. Do you base your rates on last years fuel cost or 6 mos ago? Once you know that, look here:

https://www.eia.gov/petroleum/gasdiesel/ to find your base cost.

Take a look at this: https://www.ooida.com/trucking-tools/fuel-surcharge-calculator/

Hope this helps.

Replied on Mon, Mar 14, 2022 at 02:11 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Heres another article on the topic: https://smallbusiness.chron.com/calculation-fuel-surcharge-76703.html

Replied on Mon, Mar 14, 2022 at 02:37 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "First you need to look at this to calculate your base. Do you base your rates on last years fuel cost or 6 mos ago? Once you know that, look here: https://www.eia.gov/petroleum/gasdiesel/ to find your base cost. Take a look at this: https://www.ooida.com/trucking-tools/fuel-surcharge-calculator/ Hope this helps." I used the OOIDA calculator. I looked at what fuel price we were profitable at before the prices went up and used that price per gallon as a base and then used the fleet MPG off of IFTA as the average and came up with the fuel surcharge. We use the price on the sign at the truck stop next door as out price for figuring FSC. I think it is very fair, as do our customers.

Replied on Mon, Mar 14, 2022 at 02:37 PM CST

Posted by a private BulkLoads.com member.

Quote: "First you need to look at this to calculate your base. Do you base your rates on last years fuel cost or 6 mos ago? Once you know that, look here: https://www.eia.gov/petroleum/gasdiesel/ to find your base cost. Take a look at this: https://www.ooida.com/trucking-tools/fuel-surcharge-calculator/ Hope this helps."

I used the OOIDA calculator. I looked at what fuel price we were profitable at before the prices went up and used that price per gallon as a base and then used the fleet MPG off of IFTA as the average and came up with the fuel surcharge. We use the price on the sign at the truck stop next door as out price for figuring FSC. I think it is very fair, as do our customers.

Replied on Mon, Mar 14, 2022 at 02:37 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Nope. Fuel Surcharge goes to the truck 100%. If the carrier can not make it on the percentage of the load they would normally get, then the rate was to low in the first place.

Replied on Tue, Mar 15, 2022 at 07:42 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Nope. Fuel Surcharge goes to the truck 100%. If the carrier can not make it on the percentage of the load they would normally get, then the rate was to low in the first place. " Ok. Thanks for the input. I made my own fuel surcharge. I started at $2.10 and worked off my historical mpg. Theoretically you use either national DOE fuel cost or one of the regional areas. Texas is PADD3. The person that was taking part of my surcharge saw the light and is returning the holdings. The power of persuasion. Now the secret is will anyone accept my surcharge? PADD3 with my surcharge is 27% on top of $2.10 permits. I received a schedule from a shipper that was more. Of course if you include California it goes crazy. Art Pfluger

Replied on Tue, Mar 15, 2022 at 07:42 AM CST

Posted by a private BulkLoads.com member.

Quote: "Nope. Fuel Surcharge goes to the truck 100%. If the carrier can not make it on the percentage of the load they would normally get, then the rate was to low in the first place. "

Ok. Thanks for the input. I made my own fuel surcharge. I started at $2.10 and worked off my historical mpg. Theoretically you use either national DOE fuel cost or one of the regional areas. Texas is PADD3. The person that was taking part of my surcharge saw the light and is returning the holdings. The power of persuasion. Now the secret is will anyone accept my surcharge? PADD3 with my surcharge is 27% on top of $2.10 permits. I received a schedule from a shipper that was more. Of course if you include California it goes crazy. Art Pfluger

Replied on Tue, Mar 15, 2022 at 10:41 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. if they dont pay it they are not entitled to any

Replied on Wed, Mar 16, 2022 at 07:31 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. ALL PASSED ON

Replied on Wed, Mar 16, 2022 at 10:28 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. We pay 100% to whoever owns the truck

Replied on Wed, Mar 16, 2022 at 10:33 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. In arts post he said he has trucks working for another carrier, but he did not specify if they were company trucks or independent contractors ? Many are left to make assumptions at that point, but just for fun let’s replace the term carrier with broker? And see if the reaction changes? If a carrier is entitled to keep a percentage of the fuel surcharge then why not a broker? And if 100% of the fuel surcharge is not being used to cover the increased cost to the power unit is it still a surcharge, or has it by de facto turned into a rate increase? What is the purpose of a fuel surcharge?

Replied on Wed, Mar 16, 2022 at 10:33 AM CST

Posted by a private BulkLoads.com member.

In arts post he said he has trucks working for another carrier, but he did not specify if they were company trucks or independent contractors ? Many are left to make assumptions at that point, but just for fun let’s replace the term carrier with broker? And see if the reaction changes? If a carrier is entitled to keep a percentage of the fuel surcharge then why not a broker? And if 100% of the fuel surcharge is not being used to cover the increased cost to the power unit is it still a surcharge, or has it by de facto turned into a rate increase? What is the purpose of a fuel surcharge?

Replied on Sat, Mar 19, 2022 at 08:58 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Fuel surcharge is for the person responsible for the cost of the fuel. But there are no rules or laws stating that as I'm aware of. In my opinion, carriers claim a percentage of surcharge because they can and there's not much you can do about it except find a more reputable carrier.

Replied on Sat, Mar 19, 2022 at 08:28 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. The way we do it is to determine the fuel surcharge for the week based on EIA quoted diesel price. A percentage. We mark up the charge to the shipper based on that percentage, and then we mark up what we pay the carrier using the same percentage. Email me if you want our excel - based fuel surcharge calculator, [email protected]

Replied on Sat, Mar 19, 2022 at 08:29 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "In arts post he said he has trucks working for another carrier, but he did not specify if they were company trucks or independent contractors ? Many are left to make assumptions at that point, but just for fun let’s replace the term carrier with broker? And see if the reaction changes? If a carrier is entitled to keep a percentage of the fuel surcharge then why not a broker? And if 100% of the fuel surcharge is not being used to cover the increased cost to the power unit is it still a surcharge, or has it by de facto turned into a rate increase? What is the purpose of a fuel surcharge?" We are pulling the carrier trailer. We pay fuel and its 45 days to be paid. Its costing a lot of money to keep these 2 going until payment. However carrier acts more like a broker. No lease. They have broker credentials. Art Pfluger

Replied on Sat, Mar 19, 2022 at 08:29 PM CST

Posted by a private BulkLoads.com member.

Quote: "In arts post he said he has trucks working for another carrier, but he did not specify if they were company trucks or independent contractors ? Many are left to make assumptions at that point, but just for fun let’s replace the term carrier with broker? And see if the reaction changes? If a carrier is entitled to keep a percentage of the fuel surcharge then why not a broker? And if 100% of the fuel surcharge is not being used to cover the increased cost to the power unit is it still a surcharge, or has it by de facto turned into a rate increase? What is the purpose of a fuel surcharge?"

We are pulling the carrier trailer. We pay fuel and its 45 days to be paid. Its costing a lot of money to keep these 2 going until payment. However carrier acts more like a broker. No lease. They have broker credentials. Art Pfluger

Replied on Sat, Mar 19, 2022 at 08:29 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Fuel surcharge is for the person responsible for the cost of the fuel. But there are no rules or laws stating that as I'm aware of. In my opinion, carriers claim a percentage of surcharge because they can and there's not much you can do about it except find a more reputable carrier." We negotiated a rate nov 1st. I didn't listen to my wife when she told me they were keeping 20 percent of surcharge. Fuel went nuts and I saw settlement and told carrier f$^^$# you. We negotiated new rate as of the 16th with new sliding Fuel surcharge. After returning trailers to the yard they paid my back surcharge to nov 1st. I hate that everyone has to be at each others throat to get your point across but they did the right thing in the end

Replied on Sat, Mar 19, 2022 at 08:29 PM CST

Posted by a private BulkLoads.com member.

Quote: "Fuel surcharge is for the person responsible for the cost of the fuel. But there are no rules or laws stating that as I'm aware of. In my opinion, carriers claim a percentage of surcharge because they can and there's not much you can do about it except find a more reputable carrier."

We negotiated a rate nov 1st. I didn't listen to my wife when she told me they were keeping 20 percent of surcharge. Fuel went nuts and I saw settlement and told carrier f$^^$# you. We negotiated new rate as of the 16th with new sliding Fuel surcharge. After returning trailers to the yard they paid my back surcharge to nov 1st. I hate that everyone has to be at each others throat to get your point across but they did the right thing in the end