fuel surcharge

Oct 16, 2015 at 12:20 PM CST + 1
SCOTT MUNDIE MUNDIE FAMILY FARMS, LLC Caret, VA 2 Posts, 0 +, 0 -	SCOTT MUNDIE MUNDIE FAMILY FARMS, LLC - Caret, VA I was asked to provide my fuel surcharge policy. I don't really have a policy so to speak. I usually handle that on a load by load basis. Can anyone give me some guidance as to what is a fair fuel surcharge policy? Thanks.

Replied on Fri, Oct 16, 2015 at 02:57 PM CST
BILL STONE PYLES TRANSPORT, INC Cloverdale, IN 32 Posts, 1 +, 0 -	BILL STONE PYLES TRANSPORT, INC - Cloverdale, IN We use 1% for every $0.10 over $2.50 per gallon based on midwest avg.

Replied on Fri, Oct 16, 2015 at 03:14 PM CST
SCOTT MUNDIE MUNDIE FAMILY FARMS, LLC Caret, VA 2 Posts, 0 +, 0 -	SCOTT MUNDIE MUNDIE FAMILY FARMS, LLC - Caret, VA Thanks for the information

Replied on Fri, Oct 16, 2015 at 04:36 PM CST + 1
ALFRED JORDAN POWERHOUSE TRANSPORTATION, LLC PECULIAR, MO 1189 Posts, 207 +, 6 -	ALFRED JORDAN POWERHOUSE TRANSPORTATION, LLC - PECULIAR, MO Even the DOD says it should be about 12% above your cost for fuel: Example: DOD says the baseline rate is: $2.50 per gal MPG: 5 Your fuel cost: $2.80 DOD baseline cost: .50 per mile Your cost: .56 per mile FSC would be .06 per mile The dilemma with this is that the DOD has not established a base line cost for the freight though. The original baselines were based upon this DOD baseline: $1.15 per gal MPG: 5 Your fuel cost: $2.80 DOD baseline cost: .23 per mile Your cost: .56 per mile FSC would be: .33 per mile Now the DOD adjusted fuel for inflation but they did not make any adjustments for the price of trucks, insurance, drivers and the rest going up. In effect they gave us all a pay cut when the set the new fuel surcharge baseline from $1.15 - $2.50 recently. This is why there is such a question about what FSC should be. You need to say thanks to your government for the pay cut. I still have the fuel surcharge calculator from the DOD from back in 2009 it has not changed just the baseline cost for fuel. Hope this helps.

Replied on Fri, Oct 16, 2015 at 04:36 PM CST

+ 1

ALFRED JORDAN

POWERHOUSE TRANSPORTATION, LLC

PECULIAR, MO

1189 Posts, 207 +, 6 -

ALFRED JORDAN

POWERHOUSE TRANSPORTATION, LLC - PECULIAR, MO

Even the DOD says it should be about 12% above your cost for fuel:

Example:

DOD says the baseline rate is: $2.50 per gal
MPG: 5
Your fuel cost: $2.80

DOD baseline cost: .50 per mile
Your cost: .56 per mile
FSC would be .06 per mile

The dilemma with this is that the DOD has not established a base line cost for the freight though. The original baselines were based upon this

DOD baseline: $1.15 per gal
MPG: 5
Your fuel cost: $2.80

DOD baseline cost: .23 per mile
Your cost: .56 per mile
FSC would be: .33 per mile

Now the DOD adjusted fuel for inflation but they did not make any adjustments for the price of trucks, insurance, drivers and the rest going up. In effect they gave us all a pay cut when the set the new fuel surcharge baseline from $1.15 - $2.50 recently. This is why there is such a question about what FSC should be.

You need to say thanks to your government for the pay cut.

I still have the fuel surcharge calculator from the DOD from back in 2009 it has not changed just the baseline cost for fuel.

Hope this helps.