is it just me or doesn't something seem right? when fuel was over 4.00/gallon we were getting almost .25 cpm(b unit). now that fuel is around 2.00/gallon we are getting .05 cpm??? price of fuel goes down 50%, fsc goes down 80%???? why is it not like around 10 -15 cpm? the load i just got(first one in a week),the fsc doesn't even pay for half of what i will spend...
what's happening to fuel surcharge?
- Thread starter tyoung
- Start date
The FedEx fuel surcharge is based on National Average of fuel priced above $1.20 per gallon. So even though the pump price has dropped by 53.25% the actual difference in fuel surcharge can be figured in this matter and you can see the difference is actually minute.
National Average Price $4.00 $2.13
Fuel Surcharge Cutoff Price $1.20 $1.20
Difference $2.80 $.93
Fuel Surcharge $.18 $.06
% Difference in Actual Cost .93/2.80=.33214%
% Difference in Fuel Surcharge 06/.187=.32085%
So actually the difference is about 1% and if you figure in the ominous .009 the oil company seems to be determined to tack on the end of all fuel pump prices it would probably be less than the 1%.
The fuel surcharge is designed to pay for fuel over the cost price of $1.20. So if you are getting 0.06 cent per mile surcharge and you get 20 mpg that would give you an addition $1.20 per gallon to off set fuel cost. So you would actually be making more than the $.93 you should be paying.
(I took the fuel surcharge numbers from the chart sent out by FedEx as an addendum to our contract. If the national average price drops below $1.20 there will no longer be a fuel surcharge. We can only hope.) Tried to do this in chart fashion but could not get it to work hope you can understand my figures.
National Average Price $4.00 $2.13
Fuel Surcharge Cutoff Price $1.20 $1.20
Difference $2.80 $.93
Fuel Surcharge $.18 $.06
% Difference in Actual Cost .93/2.80=.33214%
% Difference in Fuel Surcharge 06/.187=.32085%
So actually the difference is about 1% and if you figure in the ominous .009 the oil company seems to be determined to tack on the end of all fuel pump prices it would probably be less than the 1%.
The fuel surcharge is designed to pay for fuel over the cost price of $1.20. So if you are getting 0.06 cent per mile surcharge and you get 20 mpg that would give you an addition $1.20 per gallon to off set fuel cost. So you would actually be making more than the $.93 you should be paying.
(I took the fuel surcharge numbers from the chart sent out by FedEx as an addendum to our contract. If the national average price drops below $1.20 there will no longer be a fuel surcharge. We can only hope.) Tried to do this in chart fashion but could not get it to work hope you can understand my figures.
Hey NOBB4U will you do my taxes this year?
That was THE best explanation of the FSC that I have seen anywhere! You know, if we could get you on the IRS team I'll bet you anything you could fix the mess so it is simple.
We told our CPA to write "Apply Rangle Rule" to our tax form. If the government guys don't have to pay...
Just kidding!
That was THE best explanation of the FSC that I have seen anywhere! You know, if we could get you on the IRS team I'll bet you anything you could fix the mess so it is simple.
We told our CPA to write "Apply Rangle Rule" to our tax form. If the government guys don't have to pay...
Just kidding!
That is a very good explanation of how the FSC works.
The FSC is not meant to pay for your fuel only take it down to the $1.25 a gallon and pay the difference based on what an average MPG truck you have.
The FSC is not meant to pay for your fuel only take it down to the $1.25 a gallon and pay the difference based on what an average MPG truck you have.
nightcreacher
Veteran Expediter
nobb,I too congradulate you,that was a very good explanation
