Cowpuncher
Well-known member
A lot of companies (trucking, custom farmers, etc.) are adding fuel surcharges to their rates and invoices. This is completely understandable since they cannot expect to absorb the increased cost of fuel without eventually going out of business.
However, the amount of some of these surcharges are several times the additional cost of fuel. Some truckers have increased their rates from $2.00 to $3.25 per mile. A farmer who does occasional work for us raised his acre rate from $7.00 to $10.00.
Some arithmetic will show that these fuel surcharges are more than the total cost of fuel. Generally, in our area, and considering the type of equipment, it takes a gallon of diesel to make a pass with a drill or sweep over an acre. With farm diesel running about $2.00 per gallon, this fellow is making $1.00 per acre on the fuel surcharge.
Gotta check for new vendors or do it ourselves.
However, the amount of some of these surcharges are several times the additional cost of fuel. Some truckers have increased their rates from $2.00 to $3.25 per mile. A farmer who does occasional work for us raised his acre rate from $7.00 to $10.00.
Some arithmetic will show that these fuel surcharges are more than the total cost of fuel. Generally, in our area, and considering the type of equipment, it takes a gallon of diesel to make a pass with a drill or sweep over an acre. With farm diesel running about $2.00 per gallon, this fellow is making $1.00 per acre on the fuel surcharge.
Gotta check for new vendors or do it ourselves.