Last week I made a prediction while one of my interventions on Livraison XTRM, a prediction I want to record here for future reference.
What is that prediction?
During a trip to Pennsylvania and seen a price of $3,699 a gallon of that precious liquid we need to do our work or to move ahead with our small business, I predicted on air that we would see a price of $4.00 a gallon before the end of the summer. Not only in some states but on the National average calculated by the EIA (http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm).
One more factor in our changing industry. How can we react to these price increases and what kind of impact it may have on our everyday life? To readjust the fuel surcharge is a viable solution but in the current state of competition, some won’t hesitate to take a load at lost only to relocate equipment.
How can we make understand that backhauls are a thing of the past and that all loads are to be moved from point A to point B. Do you know your costs of operations to avoid taking a full load at lost?
The most commonly used way to calculate a FSC is based on a price of $1.25 a gallon. This price is deducted from the current average price and then divided by 6. Why 6? This is an average mpg for heavy trucks.
Ex Current price $3.55
Reference price $1.25
Difference $2.30
Surcharge of $0.38
You can calculate with a different base price however, this is the mostly used price. Also if you take a load from a broker, assure yourself that you are given the full fuel surcharge that the broker gets. After all, you are the one paying the fuel bill.
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