New frontier in fuel surcharge could be near

Updated Dec 3, 2013

Gary Lewis, president of Pendulum Shift Consulting offered his insights on making sense of fuel charges to fleet executives attending CCJ’s Fall Symposium in Scottsdale, Ariz., today.

Lewis says a fuel reimbursement evolution underway today beginning with a slow, yet steady shift is aware from the Department of Energy Weekly Index. He feels eventually a daily index, and eventually a daily, lane-specific index will be a vital fuel for fleets wanting in insure fair fuel pricing.

Lewis listed his 12 Attributes for an Equitable Fuel Reimbursement Program for attendees, which included these vital points:

* It must be a fact-based program.

* It must be a long-term solution.

* It should be a partnership approach between the carrier and the shipper.

* Strive for a low transaction cost.

* Set a zero fuel trigger.

* Best in class should be an earned attribute

* The solution should be lane specific with a daily reset.

* Consistently work to improve your bid precision

* Shipper’s gallons only.

* Keep IT intervention to a minimum.

* Address the fuel spread.

* Evaluate all your pricing options.