Fuel Surcharge

March 21, 2022
RE: Fuel Surcharge

To Our Valued Customer,

As a privately owned company, we understand the need to keep costs down while operating efficiently. We constantly search for ways to maximize the value our services provide. From time to time, however, it is necessary to adjust our service rates to compensate for increases in expenses.

An example of this which is readily apparent is the increase in fuel costs. Over recent months, we have seen the price of fuel jump significantly. This increase has come to the point that it is no longer absorbable into our current rate structure. After careful consideration, we have decided that the best way to handle this excessive cost is to impose a fuel surcharge on our services. Beginning with this month’s billing, this surcharge will be added to the final invoice for all field and athletic trips, shuttles, and private charters. The fuel surcharge cost will be calculated on a trip-by-trip basis as follows:

  • Transportation ≤50 miles portal-to-portal
    • If the weekly national average on highway diesel fuel is ≤$5/gallon – For the first $2 above our fuel threshold of $3 per gallon, a flat $16.50 fuel surcharge per trip will be added to all charter transportation.
    • If the weekly national average on highway diesel fuel is >$5/gallon – If fuel costs increase to more than $5 per gallon, the fuel surcharge rate will be the difference between the weekly national average cost for highway diesel fuel and our $3 per gallon fuel threshold, divided by 6 miles per gallon, times the actual number of miles travelled portal-to-portal or $16.50, whichever is greater. (e.g., if fuel cost is $5.50/gl then fuel surcharge is $0.41/mile or $16.50, whichever is greater)
  • Transportation >50 miles portal-to-portal
    • The fuel surcharge rate will be the difference between the weekly national average cost for highway diesel fuel and our $3 per gallon fuel threshold, divided by 6 miles per gallon, times the actual number of miles travelled portal-to-portal or $16.50, whichever is greater. (e.g., if fuel cost is $5.50/gl then fuel surcharge is $0.41/mile or $16.50, whichever is greater)

At Coastal Bus Line, we pride ourselves on providing quality service at a reasonable cost. We also strive to maintain a level of professional service you have come to expect. If you have any questions, please feel free to contact me at 843-764-9475.

We value your business and look forward to our continued partnership.

Sincerely,
Troy Hagemann
Owner, Coastal Bus Line