It’s that simple.
It took a lot of heavy-duty thought and time to come up with this complex formula.
But it takes very little effort to explain it. It has a nice ring to it. People like it. It is very Fair.
And we don’t jack up our base prices to cover fuel costs.
We hope this makes it much easier for you to predict your highway fuel surcharge costs.
Because within the freight transportation industry, such as between brokers and carriers, transactions are normally agreed on an all-in price basis, and fuel surcharge is almost never charged.
So if it is not a cost we have to pay, why should we charge it to our customers? That is Fair Pricing at work.
The fact that it is not charged between folks who understand real fuel costs may have something to do with the significant long-term improvements in fuel efficiency outstripping the near-zero long-term constant-dollar increases in fuel price: in other words the real cost of fuel per mile has decreased since the fuel surcharge concept was invented.
So why are some brokers and carriers still charging a fuel surcharge? We don’t know … you’ll have to ask them.