What is it?
The gross fuel expense percentage provides insight into the total fuel costs in comparison to total revenue. In this case, a lower GFEPCT indicates higher profit margins through lower fuel costs. Carriers reporting this data are members of the Truckload Carriers Association’s TPP Program
Formula: Percentage of gross fuel expense = (gross fuel purchased + fuel additives + diesel exhaust fluid + taxes) / operating revenue * 100
Who is interested?
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 index is a model of how well carriers perform. The higher numbers mean a company is losing more money per load as a percentage and can identify their total losses deriving from fuel costs.