Can someone explain fuel surcharge?

[DHayden]

Was wondering exactly how the fuel surcharge worked for these companies that deliver RV's. I see one says 35cent fuel surcharge when fuel prices reach a certain point nationally? Can someone explain this in detail for me? They pay? you pay?

 

[JStraw]

If your the one having a trailer moved then you pay the surcharge. A surcharge is somthing the charging party applies. In the case of a fuel surcharge I wager a guess that they normal charge a flat fee for a move but, with fuel prices increasing to what seems to be every day, its how they maintain a profit without cutting into it.

 

[DHayden]

So if you are contracting to move these trailers, it would be an additional 35cents per mile to you on top of your basic rate? Being that most of those companies say the contractor is responsible for all fuel costs.

 

[HBarlow]

As an example, Horizon Transport, a TDR advertiser, pays a basic rate of approximately $0. 80/mile for new transporters. Owner/operators who have been with them for a long time and have accumulated thousands of miles of accident free towing earn a higher rate. Some individual units pay a higher rate for various reasons.



Horizon is currently paying a fuel surcharge of $0. 18/mile. The fuel surcharge is paid by the RV manufacturer to the transport company and is passed on to the owner/operator who actually tows the unit. So the owner/operator receives a total of $0. 98/mile for a typical trailer. I believe that federal law requires the transport company to pass on the entire amount and is prohibited from withholding any portion of the fuel surcharge.



I'm surprised that anyone is paying a fuel surcharge of $0. 35/mile. It sounds high but might be right for drivers operating in regions with very high fuel costs like the Pacific Northwest.



Harvey

 

[DHayden]

Thanks for explaining that for me, thats how I figured it worked by using common sense, but someone who knows "alot more than the rest of us" (you know the type) explained it to me very differently which made no sense and caused my confusion. Thanks again

 

[RedRam401]

The Energy Information Administration tracks average fuel prices across the nation on a weekly basis.

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

They do not set fuel surcharge rates, that is left up to individual shippers to negotiate with customers.

 

[JStraw]

I'd like to also mention that if your moving private parties, ie owners, you won't get a kickback from a manf. That may be the case of the . 35 cent surcharge since manf. pay lower. It all depends on the situation as to whether its a corporate or prive move as to who pays.



I move private parties trailers and until recently used a flat rate. But, with rising fuel prices I now have to charge a flat rate plus fuel (one way) to break even with a little profit. It would be easier if I had a trailer in tow on the return trip but its mostly an empty return. It makes for long days.