What is it?
The GFEMIL is an index that measures the total fuel consumption expenses associated with all moves and is expressed on a per-mile basis. That includes total fuel costs for purchasing rack fuel, fuel additives, diesel exhaust fluid and taxes. The formula applies to fleets of any size and provides an industry standard for benchmarking. Carriers reporting this data are members of the Truckload Carriers Association’s TPP Program.
Formula: Gross fuel expense per mile= (gross fuel purchased + fuel additives + diesel exhaust fluid + taxes) / (odometer miles end of period – odometer miles beginning of period)
Who is interested?
Like the GFEPCT, carriers are among the most likely parties to be interested in this index. However, it can add value for brokers and shippers that wish to stay informed and know whether to expect an upward or downward trend in assessed fuel surcharges.
What does it tell me?
The GFEMIL captures the gross fuel expenses of a carrier or broker and breaks down the costs into a per-mile rate. That provides insight into the total fuel costs associated with each mile of transportation. As a result, carriers are able to identify whether their loads are trending in a negative direction (increasing GFEMIL) or positive direction (decreasing GFEMIL), recognize when to assess new fuel surcharges and stay proactive.