Surcharge

Oops

Expert Expediter
Who determines fuel surcharges and are you currently using this method to assist O/O?
 

X1_SRH

Expert Expediter
Good question oops!! Fuel surcharge is based primarily on the national average price for a gallon of diesel fuel. (as of today it is $2.053)By including a fuel surcharge in addition to base pay the cost of diesel for a strait truck should remain at around $1.00 per gallon, regardless of pump price. Each customer has a different way of paying the surcharge (cents per mile -or- percentage of tarriff)but most all of them do pay it. The fuel surcharge is 100% passed on to the truck owner. As fuel prices go up or down, the surcharge is adjusted accordingly. This is one of the methods used to help O/O's stay profitable during these times of diesel-gouging. Great question, and I hope this helps - X
 

LDB

Veteran Expediter
Retired Expediter
My company has an assortment of surcharges ranging from zero to I believe as high as 12% depending on the particular shipper. A few are a set rate per mile but most are % of tariff I believe. The surcharge is based on the total bill not just the portion I get paid and it all goes to me. If the surcharge is 8% and the charge to the customer is double what I make then I am getting 16% in fuel surcharge.

Right now I'm just sitting waiting on my first run. I finally got my title and plates done and became available this morning. I'd like to be on my way up to MI,IN,OH or somewhere making a nice fuel surcharge myself but am getting an early dose of that patience thing they talked about. At this point I'd just as soon get a call early in the morning as to get one tonite. I like driving in daylight much better whenever possible.

Keep asking questions. The only dumb question is the one not asked. Good luck.
 

SHARP327

Veteran Expediter
I MAY HAVE THIS ALL WRONG BUT IT SEEMS THAT THE OIL COMPANYS KNOW WE'RE GETTING THIS SURCHARGE AND THAT'S WHY THEY ARE IN NO HURRY TO LOWER THE COST OF DIESEL FUEL, AND EVEN IF WE'RE GETTING THE FUEL CHEAPER THAN THE PUMP PRICE WE'RE STILL PAYING TAXES ON LET'S SAY $2.06 PER GALLON WHICH IS LOT MORE THAN JUST A BUCK PER GALLON.

AND FROM WHAT I'VE BEEN TOLD DIESEL FUEL IS A BY PRODUCT OF THE GASOLINE PRODUCTION PROCESS.

JUST A THOUGHT THAT'S ALL

BE CAREFUL OUT THERE!

SHARP327:)
 

apollo

Expert Expediter
AHow does the fuel surcharge work out for a van? Does it still get the driver in the $1 range for fuel?

Thanks
 
Top