How fuel scale surcharge effects transportation cost.

“It drops like a feather, and rises like a rocket”… People have said this for a long time in relation to fuel costs.

Fuel surcharge has both a good and bad impact on the economy. Of course increased fuel costs decrease personal purchasing power. Though, when fuel costs drop, top line revenue for transportation companies drops, while spend for businesses who have need for transportation gets lower. Consumers pay less for gas and transportation, as well. Airline pricing is the exception to this rule.

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Above is a simple chart explaining how increasing fuel surcharge, in addition to line haul, raises transportation cost overall. According to a recent Boston.com article Will Gas Prices Drop Below $2 a Gallon? AAA Says Yes. And, gasoline is approaching less than $2 a gallon in many states.

YRC reports their current LTL FSC is 21.30% and TL FSC is 42.60%.

It may be a good idea to get out on the road and enjoy it now, before fuel costs rise again.

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