Quote:
Originally Posted by teemobile
Where and when does a fuel surcharge come into play? Is this something only the large freight companies are able to charge the customer?
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Any carrier, regardless of size, can use a fsc. The fsc is mostly used on longer term contracts to offset spikes in fuel prices. If you mostly use spot market rates, it won't make any difference since rates are normally higher and should offset the fsc. Lets say that a load pays $2/mile. Another pays $1.75 + 0.25 fsc. The rate is the same. If you run your own authority, find a minimum rate you want to haul a load and don't go under that rate. You may also have a target rate. I look at the rate and don't worry about the fsc. When you look at the fsc, it is like smoking mirrors. It isn't that the fsc is not important, but unless you are leased to a carrier, it becomes much less important to your business.