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Home » Fuel Surcharges on Loads Don't Cover All Expenses of Carriers

Fuel Surcharges on Loads Don't Cover All Expenses of Carriers

April 8, 2011
ChemLogix

Fuel surcharge formulas are based on a loaded-mile formula. All empty miles run between the terminal and your loading site, such as miles from the carrier's last delivery to you or miles to the terminal for equipment repairs or tank cleaning, are not included in the fuel surcharge calculation.  As a result, the carrier has added fuel costs for those empty miles. Sure, when you contracted with the carriers, they built in some fuel recovery number for empty miles.  However, recent fuel cost increases (the time from when you negotiated your contracts until now) are not included in those calculations.

What does this mean to you?

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    KEYWORDS Business Strategy Alignment Chemicals & Energy Global Supply Chain Management Inventory Planning/ Optimization Logistics LTL/Truckload Services Pharmaceutical/Biotech Quality & Metrics Supply Chain Analysis & Consulting
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