Life On the road

Fuel surcharges vs. actual fuel costs

Truckers and shippers, still feeling the pain from last summer’s fuel costs, are hoping to close the gap between fuel surcharges and actual fuel costs. Last year, when diesel prices jumped from $3.35 per gallon in January to $4.76 per gallon in July, fuel surcharges couldn’t keep up. This was devastating for many carriers and fleet owners, and the high fuel costs often meant bitter negotiations with shippers who believed the surcharges were over the top.
     To defuse some tension, carriers and shippers are looking at equitable ways to establish fuel surcharges, and some believe technology is the answer. Schneider National, for example, is promoting a software program to its shippers, which can calculate actual fuel costs on a per-lane basis for a given day, according to The Journal of Commerce.
     The program tabulates the carrier’s fuel cost for every load, making the actual costs transparent for both shippers and carriers. The program is lane-specific, calculates fuel prices at more than 5,500 truck stops, and is updated daily.
     If the volatility of fuel prices continues, such software programs may very well become the norm.
     The method of calculating fuel surcharges has not changed much since the 1970s, when the Energy Department created the National Retail Average. One transportation consultant said that any process that helps manage fuel costs is good for carriers and shippers.
     Duff Swain of Trincon Group acknowledged that “sometimes you find shippers using their buying power to negotiate rates and surcharges to their advantage, and a more accurate surcharge program could help eliminate that.”
     Meanwhile, on another front, it turns out that aggressive driving – speeding, running red lights, racing through yellows, tailgating, failing to yield, and more – is responsible for 56 percent of all fatal crashes nationwide. Go figure.
     The AAA Foundation for Traffic Safety analyzed federal data to come to that conclusion; the group also found that speeding is the most common type of aggressive driving and is responsible for one-third of all fatal accidents.
     Although almost 80 percent of U.S. drivers surveyed said aggressive driving is a major problem, most admit to driving aggressively themselves. Aggressive drivers do not fit any mold – they can be old, young, male, female, rich, poor, white, black, Asian, or Hispanic. Drivers should never assume anything about the stranger in the vehicle next to them.
     The AAA Foundation notes that there are thousands of mentally and emotionally disturbed individuals on the highway, others impaired by drugs or alcohol, and millions more armed with firearms and other weapons.
     Bottom line: The next time you encounter a driver doing something stupid, AAA recommends keeping your cool – you never know what might set someone off. If an aggressive driver tries to pick a fight, do not make eye contact, warns AAA.
     Source: Roemer Report (used with permission)