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.
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.
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.
We deeply appreciate your understanding and partnership in helping us share the dilemma of these fuel cost increases.