What Is A Fuel Surcharge And Do You Pay One?
The cost of fuel has everyone searching for the best deal and the cheapest fuel price. We are using coupons, discount cards, miles back programs and even grocery store incentive cards to reduce the cost of driving from place to place. For those that are dependent on a vehicle to make their livelihood, the cost of fuel is the largest part of their budget. The taxi drivers, tour bus drivers, truckers and courier companies are all worried that the cost of fuel will rob them of their profits. When is it that the rapidly increasing energy costs are passed from the corporations to the consumer? Will you get billed for a fuel surcharge, and if so, what is the tipping point?
A fuel charge is added when the price of diesel fuel rises above $1.99 a gallon at the pump. At that point, a fuel surcharge of 1.00% is added to your bill and will be on your package manifest under the section, fuel surcharge. After all, when the courier company has to purchase fuel for your package to go from Sandusky, Ohio, to Memphis, Tennessee, the charge of $12.95 would not cover the maintenance or the oil change, and especially not the fuel for that long a trip. Fortunately for the courier, there is more than one package going to Memphis, and probably several more stops along the way. When you consider how many miles a courier driver travels in a day, it is amazing that courier prices are as inexpensive as they are.
Prices are reasonable at delivery services across the city. Pull into any courier company and there will be a reasonable fee for delivering your package across town. If you consider the time it would take you to drive across town in rush hour traffic, multiply that cost by your hourly rate, add in the cost of fuel and maintenance for your vehicle, and add the additional cost of insurance and the vehicle itself, you will see what a bargain it is to have a courier deliver your product.
Fuel surcharges are here for now, but they are not overly excessive. If your current diesel fuel price is $3.17 per gallon, the fuel surcharge is only 5.50%. The maximum charge listed at this time is 9.50% and that is when fuel is over $4.19 per gallon. When you continue to pro rate the service and convenience that is offered from delivery services, you are getting a good value from your courteous package couriers.
About the Author:
Chris Ellis is a consultant for trucking service and Logistics Minnesota companies.
