The Price Of Fuel...
This is a concern to all not just those in the RV transportation industry. The commercial transportation industry appears to be taking the brunt of the impact but it's hitting everyone. Not just in the fuel you buy, but in your everyday purchases as well. The items we use in our everyday life are being affected because some form of commercial transportation delivered them. When fuel goes up the price is eventually passed down to the consumer. Same with the RV transportation business.
The RV Transport companies charge their customers a base rate PLUS a fuel surcharge. The fuel surcharge is in addition to the normal rate charged to move a load from origin to destination. If you've been to FedEx, UPS or any of the other courier companies lately you've experienced a fuel surcharge.
All reputable RV transport companies pass 100% of the fuel surcharge to the transporter. As of this writing, I am not aware of any company that isn't passing this to the transporter. Believe me, if I knew of any company that was keeping a percentage of the fuel surcharge for themselves, I'd list them.
Now before I get letters, every company has their own way of calculating the fuel surcharge. If a company is paying a little less fuel surcharge than another it's probably because of their fuel surcharge agreement with their customer, not them being dishonest with the transporter.
It's not to the transportation companies benefit to skim any of the fuel surcharge. Let's face it, without the transporter the transport company is out of business. The entire industry is shut down.
What does this mean for the transporter? Basically that there is still a lot of money to be made. It's true that the price of fuel is keeping a lot of potential transporters away. Many may not be aware of the fuel surcharge.
One major transport company has published their fuel surcharge numbers that show the cost to the driver for fuel after fuel surcharge is only $1.89 per gallon. Another major company is paying an extra $.05 per mile bonus for new units being delivered.
The RVIA (Recreation Vehicle Industry Association) has predicted that RV shipments in 2008 are expected to be the fifth highest in 30 years, and well above the most recent ten-year average.
Using current fuel prices, I entered a 900 mile trip as a model in my computer. For transporter pay I entered a low $1.21 per mile. Gross pay for this trip would be $1,089.00. To make it more interesting I entered that I had to drive 800 miles empty to get to my load (trailer). At 17 mpg empty my fuel cost showed to be $190.59. With trailer and traveling 900 miles my fuel consumption dropped to 12 mpg with a fuel cost of $303.75. At the end of my trip my net after fuel totaled $593.47. Not bad for 2.5 days work and 800 miles empty.
What does all of this mean? If fewer transporters are entering the industry because of the fuel prices and 2008 shipments are expected to be the 5th highest in 30 years...It means to me that there are more trailers available to deliver which means more money in the pocket. There is a silver lining.
The RV Transport companies charge their customers a base rate PLUS a fuel surcharge. The fuel surcharge is in addition to the normal rate charged to move a load from origin to destination. If you've been to FedEx, UPS or any of the other courier companies lately you've experienced a fuel surcharge.
All reputable RV transport companies pass 100% of the fuel surcharge to the transporter. As of this writing, I am not aware of any company that isn't passing this to the transporter. Believe me, if I knew of any company that was keeping a percentage of the fuel surcharge for themselves, I'd list them.
Now before I get letters, every company has their own way of calculating the fuel surcharge. If a company is paying a little less fuel surcharge than another it's probably because of their fuel surcharge agreement with their customer, not them being dishonest with the transporter.
It's not to the transportation companies benefit to skim any of the fuel surcharge. Let's face it, without the transporter the transport company is out of business. The entire industry is shut down.
What does this mean for the transporter? Basically that there is still a lot of money to be made. It's true that the price of fuel is keeping a lot of potential transporters away. Many may not be aware of the fuel surcharge.
One major transport company has published their fuel surcharge numbers that show the cost to the driver for fuel after fuel surcharge is only $1.89 per gallon. Another major company is paying an extra $.05 per mile bonus for new units being delivered.
The RVIA (Recreation Vehicle Industry Association) has predicted that RV shipments in 2008 are expected to be the fifth highest in 30 years, and well above the most recent ten-year average.
Using current fuel prices, I entered a 900 mile trip as a model in my computer. For transporter pay I entered a low $1.21 per mile. Gross pay for this trip would be $1,089.00. To make it more interesting I entered that I had to drive 800 miles empty to get to my load (trailer). At 17 mpg empty my fuel cost showed to be $190.59. With trailer and traveling 900 miles my fuel consumption dropped to 12 mpg with a fuel cost of $303.75. At the end of my trip my net after fuel totaled $593.47. Not bad for 2.5 days work and 800 miles empty.
What does all of this mean? If fewer transporters are entering the industry because of the fuel prices and 2008 shipments are expected to be the 5th highest in 30 years...It means to me that there are more trailers available to deliver which means more money in the pocket. There is a silver lining.
posted by TALTOA at 3:28 AM
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