Best way to ask for an increase or fuel surcharge?

chipwebb · Apr 9, 2006

Hi all--

Im an O/O(cargo van). I expedite for a local airfreight company near chicago. I usually stay within 750 miles of chicago and almost always dead-head home for my next load out of chicago. Currently I get a buck a loaded mile.

With gas prices going back to 3$ Im going to have to ask for an increase per mile or a fuel surcharge.

How would you do this??

Some facts:

Small/Medium company with tons of freight.
I am respected as a pro driver who always gets the job done right
Ive been expediting for three years....1.5 with my current co.

Whaddyathink????

Broompilot · Apr 9, 2006

RE: Best way to ask for an increase or fuel surcha

Wish I could help, but I better leave this to more expierenced members. Good Luck, great drivers are not a dime a dozen, your a saught after individual who deserves more than what the market will bear if they want it done, right, and on time.

dhalltoyo · Apr 10, 2006

RE: Best way to ask for an increase or fuel surcha

First, I would start by getting your contact person to agree that you are a vauable asset to their operations.

Second, once those words come out of his mouth then I would offer a suggestion to help you remain profitable during these times of increasing fuel costs.

Third, I recommend drawing up a proposal based on the government's weekly fuel increase or decrease chart. For example, you ask for 10 cents per mile FSC. Next week, when the price drops by 1 cent per gallon based on the government's posted data you offer to reduce your FSC accordingly. ALWAYS offer the decrease scenario first. Of course, once they agree to your proposal then make sure they understand that when it rises your FSC will also increase.

bcurt · Apr 10, 2006

RE: Best way to ask for an increase or fuel surcha

I would go to OOIDA.com web site they have a form letter and charts on what could be fair charge... While you are there feel free to join...

bryan · Apr 12, 2006

RE: Best way to ask for an increase or fuel surcha

HI
Show the company how the price of fuel is cutting into your profitablity.ex:last year you hauled a load 100 miles with $10.00 in fuel and this year you hauled the same load but it cost you $15.00.Also break down your net profit per load and divide by the number of hours involved.Don't shy away from talking with the owner of the company, most company owner's started out as o/o but are so busy that they kind of lost track of what its like out here.Bring up the fact that if you arn't profitable at this rate then just amagine want is happening to the guys who don't keep good records.

chipwebb · Apr 12, 2006

RE: Best way to ask for an increase or fuel surcha

Thanks for all the great responses and ideas of communicating this problem to them. I will let you know how it goes.

chipwebb · Apr 14, 2006

RE: Best way to ask for an increase or fuel surcha

Well, so far the answer I got is that indeed there is a fuel surcharge added to my check. In fact Im actually @ .95/mi with a .05/mi fuel surcharge.

I guess not knowing the pay structure is my fault.

Just thought I would post my results so far.