Fuel surcharge

[terryandrene]

FedEx Custom Critical has announced an increase in the fuel surcharge, effective 19 Oct 04. 8.4% on the west coast; 7.2% elsewhere.

 

[theoldprof]

How does a fuel surcharge work, and how does it effect a cargo van O/O? :+ :+

 

[Glen Rice]

That is great to hear. When you crunch the numbers that is pretty much in line with what we are hearing of other company's. Good for FDCC and great news for contractors. The percentage apply's to all contractors.

 

[apollo]

So, for example if FedEx CC charges a customer $2.20 a mile, 7.2% is 15.8cpm. Do they pass on the 15.8cpm to the owner /drivers?

Thanks

 

[terryandrene]

>So, for example if FedEx CC charges a customer $2.20 a mile,
>7.2% is 15.8cpm. Do they pass on the 15.8cpm to the owner
>/drivers?
>
>Thanks

Yes FedEx Custom Criticall passes on 100% of the surcharge. All companies should do the same.

 

[LDB]

Ours are all over the scale ranging anywhere from 4% to 15% for companies paying a percentage and thirteen to nineteen cpm for those paying a fixed amount. The default for companies without a contractually set rate is 10%. The percentages are based on the charge to the shipper not on my rate per mile. All of the FSC passes through to the truck.