Maybe this will finally put YRC where it belongs. Out of business. The 10 million a year crook will have to find another company to steal from. I think CF is looking for a new leader.
Can someone please translate/interpret this post for me?
Some can figure it out, others can't. I believe that the fuel surcharge is a percentage and is fixed by the department of energy (DOE) adjusted at regular intervals. The fuel surcharge seems to be based on the discounted rate and to that extent it varies from customer to customer. I do not think that different customers get different surcharge rates otherwise.Carriers make significnant profit on Fuel Surcharge. Most customers are on different Fuel Surcharge application (depends on their pricing agreement), but as a general rule the roll up of all the combined Fuel Surcharges have a huge impact on the bottom line for the carriers. I don't think this has enough impact to put YRC out of business.
Hope this clears up the confusion.
Some can figure it out, others can't. I believe that the fuel surcharge is a percentage and is fixed by the department of energy (DOE) adjusted at regular intervals. The fuel surcharge seems to be based on the discounted rate and to that extent it varies from customer to customer. I do not think that different customers get different surcharge rates otherwise.
Jenny, True or False.......LTL companies would rather have diesel fuel be $1.00 per gallon higher than it is today.Whatever they made off fuel surcharges, is NOWHERE NEAR THE AMOUNT OF MONEY THEY ARE SAVING ON FUEL COSTS, RIGHT NOW!!!
Carriers pay for fuel at a contracted rate. So when fuel prices drop they end up actually paying more for fuel than you and I. When fuel prices rise, carriers are paying the lower pre-negotiated rate. So no, they ARENT saving right now.Whatever they made off fuel surcharges, is NOWHERE NEAR THE AMOUNT OF MONEY THEY ARE SAVING ON FUEL COSTS, RIGHT NOW!!!
Some here are UNFAMILIAR with what a "futures contract" is! Very succinct explanation, and correct assumption.Carriers pay for fuel at a contracted rate. So when fuel prices drop they end up actually paying more for fuel than you and I. When fuel prices rise, carriers are paying the lower pre-negotiated rate. So no, they ARENT saving right now.
I always wondered how those contracts work and I would love to get a look at one. I wouldn't be surprised if there were caps of some sort on both ends to protect each entity from taking too bad of a beating. I pity all homeowners who prepaid their heating oil this year. I'm sure there are a lot of them out there with heartburn right about now and they don't have safety nets to protect either entity.Carriers pay for fuel at a contracted rate. So when fuel prices drop they end up actually paying more for fuel than you and I. When fuel prices rise, carriers are paying the lower pre-negotiated rate. So no, they ARENT saving right now.
revenue per shipment, excluding fuel surcharges, has increased 7.0%, 9.8%, 8.2% and 7.3% for the last 4 reported quarters, respectively. That's where the increased earnings have come from, would be even better if the fuel surcharge revenue was higher. See KK's post above, it highlights the 3rd quarter of 2015.Fuel has been dropping for over 1 1/2 year, now, and YRC's numbers have been getting better every quarter in that same period. They are making more per-shipment every quarter over the last 6 quarters. They have to continue to raise rates; with fuel prices low it will happen. If the fuel surcharge is so big for them; then why are their numbers continuing to get better?
Fuel has been dropping for over 1 1/2 year, now, and YRC's numbers have been getting better every quarter in that same period. They are making more per-shipment every quarter over the last 6 quarters. They have to continue to raise rates; with fuel prices low it will happen. If the fuel surcharge is so big for them; then why are their numbers continuing to get better?
this is straight from the 3rd quarter conference call.....
The improvement in profitability is primarily due to the continued disciplined pricing strategy, offset by tonnage and fuel surcharge decreases and increased vehicle leasing as we continue to refresh the fleet.
the LTL pricing environment remains steady throughout the third quarter and that trend has continued in October, and we will implement a 4.9% GRI effective November 2nd.