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fuel cost and surcharges

C

clcip

Seasoned Expediter
Craig
Ok, here's a couple of questions for the recruiters. First, I'm out of the country in one of those places you read about in the news, but I'm planning on coming home in a month or so. Before I left the States, I was running a small pkg delivery biz as an IC, with a cargo van,in Fl. The hurricanes of 04 put me out of business, and I took a job overseas. When I left, fuel was a little over $1.00/gal. Now, the price has just about tripled. My question is, have surcharges and/or rates kept pace? Can anyone still make a decent living with prices this high?
Also, didn't I read here on EO that ConWay Now was recently bought out? Yet they are still recruiting for drivers, and are offering their lease/option program. I am interested in possibly learning more about a program like this, are they still in operation?
Thanks.
 
X

X1_SRH

Expert Expediter
I'm not going to address the Conway issue because I'm not a representative of any of the parties involved. I will, however, do my best to let you know about the current fuel surcharge situation.

I could give a long spiel and a dozen formulas to figure out fuel surcharge but it is pretty much mumbo-jumbo. What it all boils down to is that fuel surcharge is adjusted on a frequent and regular basis to keep your out-of-pocket cost at about $1.00 to $1.10 per gallon. These are pre-price hike levels.

With that being said, simple math will dictate that if you keep your vehicle well maintained and keep your foot out of the throttle you may be able to get another 1-2 MPG out of your ride. Those Extra MPG's are equal to pure profit. (Fuel surcharge being paid, but not used in fuel expense).

Those extra MPG's may also afford you the luxury of being able to afford a little more deadhead to "chase freight" instead of waiting for the mountain to come to you. This will allow you to increase your profit factor by adding more loaded miles to your totals. Remember, the bonus profit facilitated by todays fuel surcharge rates only apply when you are running loaded miles.

It sounds confusing but it is simple when you really think it through.

Best regards,

Scott
 
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