What does it do?
What Are Fuel Surcharges? Fuel surcharges (FSC) are extra fees added to the cost of transportation services. These fees help transportation companies deal with changing fuel prices, ensuring they can keep running smoothly and profitably.
New Feature in Alvys: Customizable Fuel Surcharges Alvys has introduced a feature allowing users to set fuel surcharge rates specific to each load, based on active contracts linked to a customer. This makes managing fuel costs more flexible and precise.
Types of FSC Contracts in Alvys:
Flat Rate: A straightforward, fixed fee added per load.
Distance: Charges calculated per mile. This uses the mileage (from Load details) and a rate determined by the current average fuel price imported from EIA APIs.
Percentage: This calculates the rate as a percentage of the Linehaul Amount in the Load, again based on the average fuel price period from EIA APIs.
These options offer Alvys users tailored ways to handle the unpredictability of fuel prices in their billing and operations.
FSC Contracts
To create a FSC Contract under Company profile, the admin must specify a Contract name that will be easy for the user to select from the list of active FSC Contracts at the load level.
Flat
The FSC type applied to a contract to specify a fixed FSC rate per load.
Image 1: Company profile - list of FSC Contracts
Image 2: Company profile - creation of FSC Contract type Flat
Image 3: Load details - Customer MoneyBox - application of the FSC Contract type Flat
Distance
In Alvys, a Fuel Surcharge based on Distance is an added fee calculated per mile. This is determined based on specific details provided in your load information and contract settings. It helps in accurately accounting for fuel costs based on the distance of transportation.
Key Elements of Distance FSC in Alvys:
Mileage Distance: The fee is based on the mileage specified in the Load details.
FSC Rate Determination: The rate is obtained from your contract settings, ensuring consistency with your agreed terms.
Contract Parameters:
Load Date: Choose from Scheduled or Actual Pick-Up/Delivery dates. This date influences the fuel price period used.
Fuel Price Date Offset: Select timing like the current week, previous week, or beginning of the month to set when fuel prices are considered.
Fuel Price Region: Choose a specific region (e.g., East Coast, Midwest) for localized fuel pricing.
Rounding Method: Options for how the surcharge is rounded, like to the nearest penny or tenth of a penny.
FSC Matrix: A customizable table of fuel price ranges and corresponding rates, uploaded as a CSV file.
Fuel Price Averages: Weekly updated fuel prices from EIA, matched with your Load date, Fuel Price Date Offset, and Region to find the right price range in the FSC Matrix.
How it Works: When load details are entered, Alvys uses these parameters to accurately calculate the fuel surcharge based on the distance of the load. It ensures that fuel costs are fairly and precisely accounted for, tailored to your specific contract and regional fuel prices.
Image 4: Customer profile - creation of FSC Contract type Distance - parameters
Image 5: Customer profile - creation of FSC Contract type Distance - FSC Distance Matrix template
Image 6: Customer profile - creation of FSC Contract type Distance - FSC Matrix
Image 7: Load details - Customer MoneyBox - application of the FSC Contract type Distance
Percentage
In Alvys, the Fuel Surcharge based on Percentage is an additional charge calculated as a percentage of the Linehaul Amount in a load. This calculation is based on the specific terms set in your contract, ensuring a direct correlation between the fuel cost and the value of the transport service.
Key Elements of Percentage FSC in Alvys:
Rate Calculation: The surcharge rate is based on the Linehaul Amount of the load and the specific FSC rate in your contract settings.
Contract Parameters:
Load Date: Choose from Scheduled or Actual Pick-Up/Delivery dates. This date influences the fuel price period used.
Fuel Price Date Offset: Select timing like the current week, previous week, or beginning of the month to set when fuel prices are considered.
Fuel Price Region: Choose a specific region (e.g., East Coast, Midwest) for localized fuel pricing.
Rounding Method: Options for how the surcharge is rounded, like to the nearest penny or tenth of a penny.
FSC Matrix: A customizable table of fuel price ranges and corresponding rates, uploaded as a CSV file.
Fuel Price Averages: Weekly updated fuel prices from EIA, matched with your Load date, Fuel Price Date Offset, and Region to find the right price range in the FSC Matrix.
How Does it Work?
When you enter load details in Alvys, the system uses the above parameters to accurately calculate the fuel surcharge as a percentage of the load's Linehaul Amount. This ensures that the surcharge is fair, precise, and in line with the specific contractual terms, adapting to the varying fuel prices based on region and time.
Image 8: Customer profile - creation of FSC Contract type Percentage- parameters
Image 9: Customer profile - creation of FSC Contract type Percentage - FSC Percentage Matrix template
Image 10: Customer profile - creation of FSC Contract type Percentage - FSC Matrix
Image 11: Load details - Customer MoneyBox - application of the FSC Contract type Percentage
Permissions to create FSC Contracts
Only users with View Contracted Rates permissions enabled can create and edit FSC Contracts in the Customer profile.
Image 12: User profile - View Contracted Rates permissions.
Permissions to apply FSC rates and types in the Load details page.
Only users with Edit Customer Rate permissions enabled can apply and edit FSC rates and types under Customer Money Box.
Image 13: User profile - Edit Customer Rate permissions.
Image 14: Customer Money Box for the user with enabled Edit Customer Rate permissions
Image 15: Customer Money Box for the user with disabled Edit Customer Rate permissions
Understanding Date Offset and FSC Matrix Calculations
Fuel Price Date Offset is a setting in Alvys that aligns fuel surcharge calculations with specific fuel price periods, ensuring each load reflects up-to-date or regionally appropriate fuel costs. The Date Offset lets users specify which period’s fuel price should apply to each load, providing flexibility to account for weekly fuel price updates from the U.S. Energy Information Administration (EIA).
Date Offset Options and Their Functions
The Date Offset influences the specific fuel price used in Alvys' surcharge calculations, pulling from weekly fuel price updates from the U.S. Energy Information Administration (EIA). Here’s how Date Offset interacts with the FSC Matrix:
Selecting the Date Offset: Users can choose from options such as:
Current Week: Uses fuel prices from the current week at the time of the load.
Current Week - 1 Day: Uses fuel prices from the day prior to the current week’s update.
Previous Week: Applies fuel prices from the prior week.
Beginning of the Month: Uses fuel prices from the start of the month.
Applying the Offset to Load Date: The Date Offset works by linking to either the Scheduled or Actual Pick-Up/Delivery date of the load, which users select based on their preference. The load date, combined with the Date Offset setting, identifies the relevant fuel price period for that load.
Fuel Price Region Selection: Users also select a Fuel Price Region (such as East Coast or Midwest), which, in combination with the Date Offset, determines the specific fuel price used. This provides a more localized and time-specific rate that aligns with market fluctuations.
Fuel Price Range in FSC Matrix: The Date Offset determines which fuel price range is matched within the FSC Matrix, which is a table containing various fuel price ranges and their corresponding surcharge rates. By offsetting the fuel price to a specific time period and matching it to the appropriate range, Alvys ensures that each load’s surcharge reflects accurate and relevant pricing.
