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  What is a fuel surcharge / fc?

What is the (US) fuel surcharge base on?
EIA / Energy Information Administration
Is the fuel surcharge negotiable?
How do fuel surcharges vary by carrier?
 
       
Within a City
Rural
Local
Longhaul
by Discount
by Freight Class
by Wt Break
 
     
 
What is a fuel surcharge / fc?
A fuel surcharge is a charge the the carriers can and do charge that is over and above their normally published rates based on changing fuel prices.
 
What is the (US) fuel surcharge base on?
In most cases a carriers fuel surcharge is based on the weekly posting of theEIA / Energy Information Administration for their chosen region of the country.
From this posting, the current average fuel price is matched against the carriers fuel surcharge table to arrive at that carriers fuel surcharge percentage. The carrier freight charges are then multiplied by the fuel percent surcharge and added to the invoice.
 
Fuel surcharge table
 
Is the fuel surcharge negotiable?
'Everything' is negotiable. Rates, fuel surcharges, accessorial charges, surcharges, terms of payment.
 
What types of agreements can be reached reguarding fuel surcharges?
Unlimited.
1) Milage based - Parties agree to a cents per mile regardless of freight costs.
2) Flat - Parties agree to a set dollar or percent as part of the pricing tariff. (example 22%)
3) Percentage - Parties agree that the customer will pay a percentage of the posted surcharge. (20% - 5% = 19%)
4) Points - Parties agree that the customer will pay a set number of points less than the posted surcharge. (20% - 5 = 15%)
5) Custom - A custom fuel surcharge table is created for a customer
 
How do fuel surcharges vary by carrier?
1) When they take effect. The above EIA file is posted on Mondays (based on the prior weeks pump prices).
- Some carriers put their surcharge into effect the same day, some Tues, Weds, etc and some the following Monday.
2) Region some carriers base their whole system on one region, others base it on the to/from the highest region.
3) AMC Absolute minimum charge for fuel surcharge. Some carriers charge a minimum of $1 - $2 per shipment
4) Accessorials - some carriers apply their fuel surcharge to the total freight bill, others to only 'line haul' and others to line haul and any 'accessorials that use fuel.'
5) Increments - some carriers raise their fuel surcharge for every penny that fuel goes up, others do it by $.02, $.05 or $.10.
6) Base table - See below table for sample carrier fuel surcharges. For comparison purposes all are using the 'national' region. In addition to showing the dollar amounts, the table shows the effect of carriers taking the increase on different days. See below table for additional notes.
 
    Mon   Tues   Weds   Thurs   Fri  
                       
A   19.1   19.1   19.9   19.9   19.9  
                       
B   27.5   27.5   27.5   27.5   27.5  
                       
C   27.5   27.5   29   29   29  
                       
D   29   29   29   29   29  
                       
E   29   29   30.6   30.6   30.6  
                       
F   29   30.6   30.6   30.6   30.6  
                       
G   30.6   30.6   30.6   30.6   30.6  
                       
H   29.5   31   31   31   31  
                       
- Note 1 - Carrier A is a full 10 points lower than carrier H
- Note 2 - Carriers D, E, F and G are all using the same rate table. The difference is which day the surcharge is effective.
 
 
 
 
 



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