Fuel Surcharge/Environmental Recovery Fee
Efficiency
Diesel Fuel Prices and Regulatory Costs Greatly Effect All Transportation Industries.
Operating efficiently helps to speed service, conserve energy, and keep costs low. The world is a precious gift and we need to take care of it by using our resources wisely. Careful routing and scheduling strategies allow us to be more efficient in our work.
Over the last few years fuel prices have increased significantly. Fuel has historically been a small percentage of the total operation cost of a truck. With recent increases and market volatility, however, it has become a major part of our costing strategy. The transportation industry has turned to fuel surcharges to lessen the burden of this somewhat unpredictable cost. As of August 31, 2005, we will also implement a fuel surcharge on all services. A letter outlining this change was mailed to current customers. The industry standard for determining surcharges has been the EIA/DOE weekly fuel price index. The calculation we will be using is based on the Midwest average for the previous month. Referencing this average to our surcharge percentage chart shows what rate will be applied. Please note that a 4.50% Environmental Recovery Fee is added to the Fuel Surcharge. This covers additional landfill fees and government reporting costs. This fee is not a government imposed tax or surcharge.
Trucks that are designed for heavy vocational use use diesel fuel. There is still a significant difference in the price of gasoline and diesel.