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What & Why Unfortunately, fuel surcharges were used as a sneaky way to add money onto freight bills after the fact in the old days so they could bid low and add on fuel charges onto the final bill. For this reason, many people have a very bitter taste in their mouth over fuel surchagers. But, there is legitmacy as to how it is used with most major carriers in this day and age. As we all know, fuel prices can change from day to day, dramatically (we know that especially after all the highs & lows in 2008). It then becomes impossible to price freight transportation with fuel included without constantly changing the price with the up & down costs of fuel. So freight carriers determine their cost to transport goods and then have an adjustment cost added onto the rates based on the fluctuating price of Diesel Fuel. The Department of Enegery helped set-up standards for determining the average nationwide price of diesel fuel which are published weekly. Most national carriers determine fuel surcharges based on this weekly report. There is a set percentage or per mile rate that is adjusted on a grid. See below for our sample grid... Benefit of Trade Show Transit First, let's start with some of our competitors. Many of our competitors have decided that they want to make money of every dollar billed out to customers. Therefore, they have a mark-up on the fuel-surcharge so you're not only paying for the raw fuel adjustment cost which can be legitimate, but you're often paying a mark-up percentage so the parent freight company makes a cut, the booking agency makes a cut, and even the sales person at the agency makes a cut. All of these "cuts" makes for an inflated fuel surcharge, which again leads to some people's hatred towards this charge making it appear as "bogus". For example, I know some of our competitors were charging around 45%-55% fuel surcharges at times in 2008 when our's was around 28%. Trade Show Transit's Dedicated/Exclusive truck service rates has 100% of the fuel surcharge going to our drivers/fuel charges. There are NO mark-ups or percentages going to the agency, parent shipping company, sales person, or otherwise. This is one of the ways we are able to supply much more competitive over our competitors. We will always quote you with the current fuel surcharge included so you know UP FRONT what your expected charges will be. However, your bill will show the fuel surcharge broken down as a seperate line item. This allows the fuel to be 100% applied to the driver for fuel costs from an accounting standpoint. Additionally, we are more than happy to break-down the fuel surcharge costs on your quotation if preferred, just let us know! Sample Fuel Surcharge Grid:
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how stacking/racking shipments can save on overall freight costs
