Fuel Surcharge
South Bay Trucking's primary objective is to provide our customers with consistent and excellent service at a fair price. Fuel prices have significantly increased, petroleum-based products cost more, and delivery fees and freight charges continue to climb.
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Rather than permanently increasing the costs of our services, we are deliberately connecting our fuel-related expenses to actual fuel costs, which guarantees cost savings for our customers if South Bay Trucking's fuel-related expenses decrease.​​​
Pricing Model
Our current pricing model is calculated using a base fuel price of $3.80 per gallon, which accounts for regional volatility and taxes. Fuel surcharges are calculated using an LTL %, as shown in the model below.
Our fuel surcharge is directly related to the national diesel fuel prices published by the U.S. Energy Information Administration ("EIA") in its U.S. On-Highway Diesel Fuel Prices index for Central Atlantic (PADD1B), which is available to the public and is widely recognized in the trucking and transportation industries.
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For transparency, the fuel surcharge, when applicable, will be shown as a separate line-item charge to your invoice. The fuel surcharge amounts on the tiered model are calculated using the EIA's U.S. On-Highway Diesel Fuel Prices index and not South Bay Trucking's actual fuel expenses.
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We deeply appreciate your understanding and partnership in helping us share the dilemma of these fuel cost increases.