If you are on a boat and happen to end up in the water for some reason, you’ll be happy for that life preserver you were wearing, especially if you cannot swim. If the boat sank, the floatation device you were wearing could be the difference between life and death.


If you’re situation has you in the water and trying to survive, you’ll want to look for any opportunity to improve your situation. Such as: floating debris, rescue craft, land, passing boaters etc…


When dealing with fuel surcharge in the trucking industry, it reminds me of the above scenario. Long ago, when fuel began to skyrocket in price, fuel surcharge became a normal practice as a way to survive a volatile fuel market. A long term base rate could be established and the fuel surcharge would take up for any variation in fuel pricing. Most fuel surcharges are based on the assumption that fuel cost between $1.15to $1.25 and the truck averages 6 mpg. These basic numbers have been in place for well over a decade.


As we look at fuel surcharge and compare it to a life preserver, I ask myself “what have we done in the trucking industry to improve our position in regards to fuel economy?” With new technology available such as, aerodynamic enhancements on the truck/trailer, more efficient engine transmissions, axles, tires, and lubricants; the 6 mpg fuel average is going to change.


It’s only a matter of time until the shipping community applies pressure to base fuel surcharge on 7 mpg instead of 6 mpg. In fact, this change is already underway as a carrier that I’m familiar with is making changes to their fuel surcharge program which is now based on a higher fuel mileage starting point.


I look at how far I’ve improved my position in regards to fuel mileage with the Cascadia Evolution. This truck includes many aerodynamic enhancements along with the Detroit DD15 engine, DT12 Direct Drive Transmission, Meritor Fuel Lite, rear axle configuration and Michelin wide base single tires. The trailer includes a Nose Cone, Fleet Engineers Side Skirts, ATD Dynamics Trailer Tail and Real Wheels Aero Covers on all positions. Let’s not forget…I have even covered the rain gutter on the rear of the trailer and moved the trailer license plate in order to obtain maximum fuel efficiency.


By paying attention to all the details, my fuel mileage has improved from the low 7’s to nearly 9.7 mpg today. During my time in the water (so to speak) I did everything I could to improve my situation and have reached the success of dry ground. I hope everyone out there is using this time period to improve their situation so that they can prosper as well.

 

Comments (4)

Henry Albert

Henry Albert is the owner of Albert Transport, Inc., based in Statesville, NC. Before participating in the "Slice of Life" program, Albert drove a 2001 Freightliner Century Class S/Tâ„¢, and will use his Cascadia for general freight and a dry van trailer. Albert, who has been a trucker since 1983, was recognized by Overdrive as its 2007 Trucker of the Year.

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I AM OUT HERE WORKING WRIGHT NOW SO I CAN INPROVE MY NEW BABY.

May 06, 2014 11:55:54 AM

The shippers probably should not care. To them $1 is a $1 and they don't care what you call it. I think that the pressure would be more apt to come from small trucking companies who use owner operators. Let's say that they get a total of $1 per mile (just an example for easy math not what any trucking company should be getting). 70% of the freight rate and 100% of the fuel surcharge go to the owner ops. If 60% is freight rate and 40% is fuel surcharge, the company will receive The trucking company will be paying the owner op a total of 82 cents per mile and keeping just 18 cents. If the base goes from 6 - 7 mpg the equation will change. If the gross freight charge does not change and 70% of that $1 is covered under freight rate and 30% of the freight rate or 21 cents goes to the trucking company with 79 cents going to the owner op. It is the company that has the most to gain from a change from 6-7 mpg.

But since the fuel surcharge is not based on actual fuel used we should always strive to improve our MPG.

May 02, 2014 6:27:55 AM

Craig great point being proactive sure lessons the pain when the changes do come about.

May 02, 2014 3:05:56 AM

Henry, you are proactive. That isn't an extremely common trait so I have to wonder how many will just sit back and complain when the fuel surcharge rates are adjusted. They will complain about not being profitable when they had plenty of time to do just as you have done. Being ahead of the curve is the place to be.

May 01, 2014 16:55:09 PM