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Calculating Fuel Surcharge
Question: How in the world do they calculate this number? I have seen it range from $.06 to $.21 but have no idea how they compute it. Answer: There are several threads on this forum offering a fuel surcharge calculator. Please try a search. I believe OOIDA's web site also offers one. Another is to add a penny per dime of fuel increase starting at a certain point, like $1.15/gallon. You can make up your own, but while some methods are more popular than others, there is no standard Answer: ok thanx Answer: The company I'm leased on to does it this way: Base 1.15/gal .01 per mi 1.21/gal .02 per mi 1.27/gal and so on. presently the fuel surcharge is: .17 per mi 2.21/gal So, for all loaded miles this week, I get .17 per mile fuel surcharge. My car usually averages around 7 mpg, so when fuel is 1.15 per gal, my cost is .16 per mi. Now, with the fuel at 2.21 per gal, my cost without FSC would be .32 per mi. BUT with the .17 FSC, my fuel cost per mile is now .15. Just for grins, I will show you what happens at $ 5 per gal. My FSC would be .64 per mile, making my actual fuel price per mile .07. So in other words, as long as I keep my fuel mileage up over 6 mpg, I profit from the fuel price hikes, through my FSC. Answer: Most companies have a base price they have set and agreed upon. Mine uses $1.20 per gallon. From there they look up the national average fuel price (or a different area, if they are regional) posted every week by the Department of Energy. Transport Topics keeps a running list that is updated every Monday evening. You would then subtract your base price ($1.20) from the weekly national average ($2.212 for the week of 10-25) to get your difference (1.012). You then divide this difference by the agreed upon miles per gallon the average car will get (my company uses 6 mpg). 1.012 / 6 = .16866 or .17 a mile. Does that explain it for you? Answer: Many companies use a base line of $1.26 for the National Average. For every six cents the National Average rises above that base line, the customer gets charged 1 cent additional per mile, and that is supposed to be passed along to the person responsible for paying for the fuel. The company I'm leased to now is paying 15 cents per mile FSC over the base rate that I am paid, and it's on both loaded and empty miles. Answer: Y'all taking notes...right? Actually it is good to go through this now and again. Answer: Yup got it all thanx! Answer: 15%-25% of freight bill depending on your rates. Copyright © 2007 - 2008 www.cartaste.com
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