Good News Ho, and the fuel surcharge...

Freight is picking up. Yes, through the pipeline I'm told that orders for Shippers of Food products is up 30-40% over this same time last year.
For Bill and I it will not matter either way, we are dedicated. Unless something crazy happens our load will remain constant.
The advantage to pulling a refrigerated trailer is that people have to eat, and vegetables are a priority for so many these days.

Fuel prices are the only thing that really have put a damper in our income.
Yes if you can believe it the price of fuel falling lower cuts in to our bottom line. The higher price for fuel, the better for us. Maybe not for anyone else, but for us it's a plus.
It sounds crazy huh?
The company we work with has an average fuel surcharge they use to calculate the amount reimbursed to us for the higher cost of fuel. It's this same formula that has reeked havoc on the company we are leased on with. They are currently being sued by former owner/operators for unfair practices pertaining to reimbursement for fees, and surcharges.
I'm locked into an older contract so I'm under a little different situation, and as long as I don't sign anything new I'll be reaping a better number than those currently unhappy.
Anyho
So let me do my wizardry and explain how all this works.
Currently the fuel surcharge is .18 cents a mile. Meaning every mile the load pays you add .18 cents a mile to the base pay.
The national average for diesel is released every week, and this week it's 2.647. Now this can work for you and against you.
If you run loads to California you are going to be at the higher end of fuel prices, if you run south then you will be at the lower end of it. So where you go has an impact on your pocketbook.
Back to the math book.
Betsy averages 6.5 mpg typically. Here comes the magic...
I bought 200 gallons of fuel today at a discounted rate of $2.35 in Arizona. My total was 471.80
With this fuel I'll be able to go 1300 miles, take the fuel surcharge for 1300 miles $234.00 and subtract it from $471.80 and you have my fuel cost for a 13oo mile run. $237.80
Now under the formula they use currently, If the fuel was the same price as a year ago it would go like this
National average $3.95 a gallon, fuel surcharge .48 cents a mile
I purchased 200 gallons in Arizona in 10/2008 at $3.66 for a total of $732.00
Same 1300 mile run at 6.5 mpg and your fuel surcharge pays you $624.00 therefore your fuel expenses was $108.00
So Ho's last year my fuel surcharge was paying about $125-$130 more for every 1300 miles, and then you add that to the total miles monthly which is 9000-10000 and you have an additional $1000 monthly income.
And if you want to get all technical and scientific, If Betsy could squeeze out 7 mpg instead of 6.5 then your playing with an all new deck of cards.
Go and figure all that shit out. You thought it was all apples and oranges didn't you.
There is a much easier way to do it too.
Currently:
Fuel surcharge .18 a mile times your fuel mileage of 6.5 = $1.17 subtract from fuel price of $2.35, gives you the price for your fuel at $1.18 a gallon at 6.5 mpg.
Year Ago today:
Fuel surcharge .48 a mile times your fuel mileage 6.5 = $3.12 subtract from fuel price of $3.66 and your price for fuel is .54
Amazing huh.
Hey I may not be worth a shit when it comes to the grammar, and punctuation. But all this math I can do in my head in seconds.
My gift is numbers ho.
Let's Ride

Comments

the dogs' mother said…
ak! Story Problem!! A real life story problem but they always strike fear into the hearts of many of my students. Anyway, glad it works out.
September 23, 2009 at 5:13 PM
mrs.missalaineus said…
you are so speaking my language !!!

i was just learning how to file the fuel tax reports for the part of ct i used to work for before i went back to school. mostly i worked on getting refunds for tolls paid on roads we had highway use tax stickers for and balancing the comcheck reports.

i cant remember- have you explained how the driver logs work? it took me forever to learn how to read them (as i had to match them up to tolls and stuff too)

xxalainaxx
September 23, 2009 at 5:42 PM
Tawnya said…
I so could have used you when I failed my math class!!! LOL
September 23, 2009 at 6:02 PM
#9 said…
Hey, your good at lot of other things..... your sense of direction is impeccable! If I ever do anything like the amazing race I would want you by my side!!
#9
September 23, 2009 at 9:18 PM
#9 said…
This comment has been removed by the author.
September 23, 2009 at 9:18 PM
Angel said…
you lost me at "freight is picking up" !!!!!!
September 24, 2009 at 4:11 PM
Joy said…
There is so much more to truck driving than I ever imagined! Wow! The more you explain, the more involved it gets! I am in awe of you!

This is interesting about the fuel. I had no idea!
September 24, 2009 at 11:35 PM
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