How do I budget fuel surcharge for my customers?

We all see it when we fill our personal vehicles up with fuel….prices are trending up with no end in sight. This can cause significant problems for manufacturers who have to build in these costs when budgeting costs for their customers. The average gallon of diesel has risen over $1.29 per gallon since March of 2007 and carriers have no choice but pass this cost along to the shipper.

Access America Transport helps bridge the gap by offering several fuel surcharge programs (commonly referred to as FSC) for customers.

-First is an additional rate per mile surcharge which is adjusted weekly based on the national average of diesel prices in addition to established line haul rates.

-Some customers also choose an additional percentage surcharge which is also adjusted weekly based on the national average of diesel prices in addition to established line haul rates.

-A large percentage of customers just choose to get transactional costs when the product is ready or near ready to ship and request “all inclusive pricing including fuel”. This method is most common when companies ship to different consignees on a regular basis.

The weekly national average of diesel pricing can be found at:

http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp

Whatever your shipping practices are staying ahead of the fuel curve will ensure that you have your transportation costs covered and will have capacity available to you whenever it is needed.