The fuel surcharge is designed to offset the high fuel spikes. If the rate is high enough, I don't worry about the surcharge. It basically becomes irrelevant. It is more important if you are hauling cheap freight or there are huge price spikes within a short time and you are under a contract at a fixed rate with a shipper or broker. Unless you can offset your increased costs then a run which was previously profitable may now lose money. Either last year or the year before, I took a load from the Southeast to California. Fuel jumped about $0.25 in a matter of 3 1/2 days. :shock: Unfortunately, there is little you can do once you are under the load and prices jump so quickly.

 

right now our company is charging around a 26% fsc

 

This Topic needs Addressing By Everyone in the industry. Companies take full advantage of O/O by not offing the FSC & creating flat rates. Now, the company your leased on to just took your side of the pay. Don't sit back and say, I get my surcharge. It's time to take back a part of the industry that is ours in the first place.

 

Some of us are smart enough to avoid companies that pay flat rates. My FSC is not calculated by the mile. It is calculated by the percentage of gross linehaul.

 

So true, But you need to pay attention to the current industry, not what is happening in your agreement. It might say rookie next to my name, but I have many years & many trucks running for me, Its just wrong to see the industry change to an others benefit. Quote flat rate w/ Surcharge or raise the price to wash the cost......

 

Why? My rates are not dependent upon the current industry. My rates are locked in under contracts.

[quote]It might say rookie next to my name, but I have many years & many trucks running for me, Its just wrong to see the industry change to an others benefit.[quote]

Welcome to Capitalism 101. :roll:

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