Fuel surcharge.

[Frieghtlinemike]

Trying to put a business plan together. Can anyone fill me in on Fuel surcharges? How does FEDEX handle this with percentage of gross? How about other companies?

What Truck interest rates are you folks seeing?

So far legal Advise on going expediting is a go but financial advice is not so optimistic.

Truck order & financing ready to go.

 

[redytrk]

Oh Boy.. I`ll make a stab at it.

To start with They established a benchmark fuel price of about $1.20 per gallon (price before it spiraled out of control) Then when the pump price average has increased for a 30 day period,a sur charge is put on each customers bill.This is calculated to give the contractor reimbursement as if the price were still $1.20.

FedEx passes all of the sur charge on to the truck owner. There are a few customers who do not pay the fuel charge due to the terms of their contract.

I should add that FECC give no additional relief for deadhead miles.
they are still paying the same (in my case for "C"trk .15 mi) as they did in 1988 when we started.

 

[LDB]

All reputable companies pass 100% of the fsc to the driver. The problem with putting it in a business plan is it's so volatile and what's correct today may be way off tomorrow. Conway for sure and I believe Express-1 pay a set rate per mile that changes on a weekly basis. It would be a little easier to factor that in as opposed to Panther, FX and others who pays whatever rate the customer contract supports from zero to 4x cpm.

Leo Bricker, owner trucks 4958, 5447
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

 

[dieselphreak2K]

Leo put it very well. It's a futile effort to make plans around fsc. I had bewtween .41 and .47 on every run i did last week, and now most of the offers i'm getting are closer to .15

 

[Frieghtlinemike]

Thanks for the replys folks.