Fuel Surcharge Letter To Customers

July 2, 2024, 2:30 pm

Increases in petroleum prices have an impact on many of our suppliers that have petroleum based products. Respectfully, Ernest Maier Inc Team. Regardless of EIA reported average fuel prices or the table above, the actual fuel surcharge percentages posted will apply for the periods specified. After careful review of industry practices, we have decided that the best way to handle this excessive cost is to impose a fuel surcharge on our services. Terms and conditions apply. Gas prices have reached record highs after the Biden administration said it would ban imports of Russian oil in a retaliatory move against the country's invasion of Ukraine.

Fuel Surcharge Letter To Customer Experience

A business that must utilize transportation in its operations sometimes adds a fuel surcharge to its customers' bills to recover the cost of the fuel it must purchase. Some businesses will opt for flat-fee surcharges, but unlike surcharges based on fluctuating fuel prices, even if the prices go down, the surcharge remains and the connection to actual fuel costs is unclear in the mind of the customer. We hope that by sharing this burden we can maintain the high quality service you have come to expect from our company. Calculating Fuel Surcharge. This will provide the percentage to multiply your service rate by in order to determine a fuel surcharge. 55 per ride surcharge. 00 per delivery will be. International Services. Next, multiply by 0.

Weekly Retail On-Highway Diesel Prices-Averages All Types for Midwest as set out in the Energy Information Administration - DOE public website for the. In addition, Matson has temporarily removed one vessel from its Hawaii service to best meet current market conditions. An example of this surcharge would be to calculate a percentage of the professional services total. The transportation industry has widely used fuel surcharges to help compensate for the added expense.

00 is the price of diesel on the. Though imposing a fuel surcharge on your customers increases your profit and recovers some of the cost of fuel, your customers may not appreciate incurring an additional expense. We will review this data and calculate our actual costs on a weekly basis. 91 therefore the price per gallon must exceed $5. For other ways to boost your productivity, read our last blog: (link: Boosting Productivity on the road). Due to the recent rise and volatility in fuel prices Hinkle Contracting will begin applying a fuel surcharge to stone delivered to our customers. I am sure there are other ways that this subject can be approached. It's a winning combination. Haul rates quoted are based on an On-Highway Diesel Fuel price of $3.

Fuel Surcharge Letter Example To Customers

We will compute the fuel surcharge on a mileage basis, and it will reflect the extra cost of the fuel used in the specific trip. 00/gallon, the association. You may view the charts provided by the Department of Energy by visiting their website at. Instead, the shipper and trucking company negotiate it privately. You can get these figures from the Energy Information Administration, which is part of the U. To view the current On-Highway Diesel Fuel Prices, visit the On-Highway Diesel Fuel page. As you are no doubt painfully aware, diesel and gasoline fuel prices are currently surging due to several factors, from pandemic-related supply chain issues to inflation to geopolitical unrest, and maybe even to a ratcheting back of U. S. domestic oil production. If you prefer another format, please.

Average retail price of fuel per gallon across the nation: $3. Your base rate should be the rate you were paying for fuel at the time you set your current service prices. Charging the exact cost for fuel on each shipment would be complicated because of frequent price changes. A good general formula for fuel surcharge calculation is to charge a 0. Maintain the property). We hope that this solution will keep the goods and services that power our great nation's economy moving. What you will do is this: Take the price of fuel in your area the week you performed the services you are billing for and subtract your base rate. We constantly search for ways to maximize the value our services provide. Crete Carrier's Fuel Price – Final Fuel Price = Driver's actual cost per gallon –> 2.

If you are an occasional UPS customer, the fuel surcharges will be included in your charges. If you lease with a company, the calculation is even more straightforward, as long as you know your actual costs per mile. Gulf Coast (USGC) prices for kerosene-type jet fuel. B) Figure the number of gallons you used: a 100-mile trip divided by 10 miles per gallon = 10 gallons used. 40 on customer orders across our marketplace, with a clear indication of the fuel surcharge on the batch before you accept it. 8 miles per gallon average. To calculate the exact surcharge, a company first selects a base fuel price that it is willing to pay for fuel without charging the customer an additional fee. Teamwork helps everyone. Here is a sample letter that you can use when notifying your shipper about the pending increase: Your Company. The surcharge applicable in each month is determined based on the U. S. Gulf Coast (USGC) price for kerosene-type jet fuel reported by the U. The fuel surcharge will be calculated on the first business day of the month based on the last weekly update published for the previous month. All International mail and parcel products, excluding IPA International products.

Letter To Customer About Fuel Surcharge

Fair and honest fuel surcharges keep trucks running profitably for the owners and helps drivers succeed with as few worries as possible. Effective on new orders shipped on or after Monday June 18th Blue Ridge will be implementing a freight surcharge of $300 per load for any previously non-confirmed orders. Drivers can reduce real costs and improve efficiency by driving in a fuel efficient way. The final cost of fuel for owner operators is calculated based on discounts and the fuel surcharge payment calculation. Fuel represents the number one expense for a carrier. Comments on this site are submitted by users and are not endorsed by nor do they reflect the views or opinions of COLE Publishing, Inc.

Matson is a wholly owned subsidiary of Alexander & Baldwin, Inc. of Honolulu (NASDAQ: ALEX). So we can VERIFY, these fees are legal. Services, " is hereby. A fuel surcharge will be. What if you lease with a company?

75 percent, both effective July 13, 2008. We base the amount of the surcharge payment on the average miles per gallon; specific to the type of truck you are driving. The Freight Surcharge for full trucks, vans or intermodal are as follows: Prorated 4'x4' & 4'x8' pallet rates for F. O. The most used formula uses three things that the involved parties agree upon: 1. By following the fuel solutions map, drivers will receive an average of 40 cent discounts. For example: If your base rate is $3 per gallon, and the price of fuel is $3. The shipping company updates a fuel surcharge rate to ensure that the customer pays the most accurate price per gallon. Effective March 9, 2022. From time to time, however, it is necessary to adjust our service rates to compensate for increases in expenses. The company joins Uber and Lyft in adding surcharges to help offset rising gas costs for drivers.

Fuel Surcharge Letter To Customers.Artful.Net

Error, (i. e. backorder. If you must recover the cost of fuel but you don't want to offend your customers, you may include the cost of fuel in the price of your products instead of listing it as a separate charge. While this action requires triangulating one ship every other week between Oakland, Long Beach and Honolulu, resulting in minor service changes for its Northern California customers, the related fuel cost savings during the past several months has allowed the company to delay implementing increases to its fuel surcharge despite the volatility of the world oil market. Expedited and Ground parcel and mail products. All that is required is to compare the load rate and fuel surcharge to your actual costs per mile. The surcharge will be based on the price of fuel in our area at the time service was provided. Final fuel price: $1.

Otherwise, you ultimately pay to transport the load, which is the opposite of what you want to do with fuel surcharges. Every additional $0. Over the past few years we have seen the price of fuel jump significantly. At xxxx and will be updated. Event) will be used to maintain the property. While Matson has traditionally applied the same percentage fuel surcharge to all of its Pacific service, it is implementing a new program that recognizes that there are greater fuel requirements in serving the more geographically remote regions of Guam and Micronesia. Because fuel surcharge calculations involve some sort of fuel mileage average, a fuel-efficient owner-operator or small fleet owner can consistently beat the standards.

Source and interval of the current fuel price. KAB Computer Services. Matson has been successful in implementing a number of initiatives designed to reduce fuel consumption, allowing the company to operate the most fuel efficient fleet possible. Surcharge to reflect. This past month fuel prices have been a significant discussion among all U. S. citizens. When the average price of fuel exceeds this amount, the company applies a surcharge amount based on a predetermined formula.