Fuel Surcharge

firefighter

Expert Expediter
I am looking for advice on how the fuel surcharge is calculated and figured for the driver. Before accepting a load does the driver know in advance if he will receive a fuel surcharge or not? Is the fuel surcharge based on so many cents per mile or is it based on that particular loads revenue? Do most loads offer a fuel surcharge? With the escalating price of fuel I am trying to figure out my expenses if I was to accept a driving position for an owner. I am looking to drive solo in a D unit with a 60/40 split and I pay fuel. Can a solo in a D unit still make a modest living after expenses? Aproximate yearly income after fuel expenses? I live in Ohio so I understand that this is a good freight area. Any information offered would be helpful towards my decision.
Thanks
firefighter
 

davekc

Senior Moderator
Staff member
Fleet Owner
We generally know in advance if there is a surcharge. It is sent with the load offer via qual-comm. Not all companies work that way. You might post this question in the recruiter section so each company can respond to how they do it. Drivers pay is a wide open question as well. How often you are available, truck size, the company, are all variables. Read as many of the posts on here as you can. This should give you some average numbers to work with. If you are driving for a owner, make sure you understand who is paying for what items. Example; drug testing, dis.insurance or workers comp, ect.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Couldn't find reference to a response in recruiter section so here's my 2 cents worth. You didn't say whether you would be getting a percentage of the carriers tariff or a flat milage rate. A fuel surcharge paid at 100% to the fuel purchaser is an important elment to your bottom line; however, If your truck is paid on a tariff percentage basis AND, tariffs vary from customer to customer, then a fuel surcharge is not an important factor so long as the dollar per mile offer meets or exceeds your minimum revenue requirements. Or, which is better: $1.10 per mile without surcharge, or $1.00 per mile with a 5% surcharge?
 

davekc

Senior Moderator
Staff member
Fleet Owner
They would essentially be the same unless it is a specific account that your carrier has a contract with. If the contract for example was signed 6 months to a year ago, high fuel prices were probably not taken into account. The fuel surcharge will adjust accordingly with the rise and fall of current fuel prices. A extra 10 to 20 cents per mile makes a significant difference. A set contracted tariff rate won't take this into account. If they are logistic loads that are bid on, high fuel prices may or may not be factored in.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
I share davekc's concern for fuel surcharge on each and every load being prefered. Our success hinges on our compensation for every load being appropriate to support all our overhead, including personal pay and company profit. My point was merely to express my opinion that if the total run pay, considering current fuel costs, is acceptable to you, it doesn't matter if a surchrge is included
 

ATeam

Senior Member
Retired Expediter
My >point was merely to express my opinion that if the total run
>pay, considering current fuel costs, is acceptable to you,
>it doesn't matter if a surchrge is included

That's a good point. While some carriers pay a flat per-mile rate for all loads, others pay varying rates on varying types of freight. Some freight can be quite lucrative even without a fuel surcharge.
 
Top