The Business of Independent Service Provider Contracting

Is the Per-Stop Fuel Surcharge Helping or Hurting? What Every FedEx CSP Needs to Know Before Peak

Posted by Jeff Walczak on 9/23/26, 2:28 PM

Your contract indexes your Per-Stop Fuel Surcharge to the weekly average self-service cash price per gallon of diesel fuel for your station's ZIP code. Every ISP Agreement uses that language. FedEx does not write a separate index for contractors running gasoline vehicles, and it does not negotiate the indexing fuel based on what is actually in your fleet.

Most CSPs run gasoline. Step vans, Transits, ProMasters, E-series — the majority of P&D fleets in this network burn regular unleaded. Which means the majority of contractors are being paid a fuel surcharge that tracks a fuel they do not buy. In most years that is a footnote, because gas and diesel move roughly together. This is not most years.

Diesel averaged $6.285 a gallon the week of September 14, 2026 — the highest weekly price the U.S. Energy Information Administration has ever recorded and the first time it has ever crossed $6, driven by tight distillate supply rather than a crude shortage. That is up more than 37% from the July low. Regular gasoline over the same stretch went from about $3.78 to $4.319 — up roughly 14% (EIA September 15 fuel update). Diesel is up $2.55 a gallon year over year; gas is up $1.15.

So, the answer to whether the surcharge is helping or hurting is, for most of you, genuinely good news: it is helping, by more than you probably realize, and it is temporary. But the money only reaches your bottom line if you control the one variable the surcharge does not pay for. This post covers how much the spread is worth on a real CSA, why every mile matters more now than it did in June, and the specific numbers to manage against before peak volume lands on November 21.

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Topics: FedEx, Agreement, Fuel, Cash flow, Costs, Fleet Management, efficiency, Route Optimization, Surcharge, Miles, Per Stop

Dispatching for Profit in Network 2.0: What Every FedEx CSP Needs to Know

Posted by Jeff Walczak on 5/2/26, 10:55 AM

The rules of profitability in FedEx's pickup and delivery world have always been demanding. In the Network 2.0 environment — FedEx's multi-year initiative to consolidate its Express and Ground networks into a single, unified system — those rules are becoming even less forgiving. With 200 station closures and 290 facility conversions completed by mid-2025, and with full integration expected around 2027, contractors are operating in a landscape defined by higher volume expectations, compressed timelines, and redefined performance metrics.

In this environment, dispatch strategy is not just an operational decision. It is a financial one. Every truck you roll out the door, every route you create, every shift you schedule either builds your profitability or erodes it. The margin between a sustainable operation and a money-losing one often comes down to choices made before 8 a.m. every morning.

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Topics: Business Planning, FedEx, Business, Profit, Costs, Network 2.0, Margins, Express, CSA, efficiency, Utilization, service provider, Route Optimization, Dispatch

Navigating the Post-Peak Rollercoaster: How to Protect Your Margins

Posted by Jeff Walczak on 12/23/25, 12:37 PM

What happens in the weeks following peak will determine whether you actually keep the profits you earned during the rush . Here is how to handle the post-peak volume swings and maintain your business continuity.
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Topics: Business Results, ISP Negotiation, FedEx, Management, Ground, ISP, Business, Profit, Money, settlement, Cash flow, Costs, renegotiation, Network 2.0, transportation business, CSA, efficiency, Maximize, Volume, Forecast

What Is Meant By Resource Utilization In FedEx Contracting

Posted by Jeff Walczak on 6/7/25, 2:53 PM

Efficiency is the heartbeat of any successful FedEx Contracted Service Provider (CSP). From maximizing driver productivity to ensuring vehicles are used effectively, resource utilization is essential for achieving operational success and profitability. But what does resource utilization really mean in the FedEx contracting space, and why is it such a critical factor for CSPs navigating the evolving logistics landscape, especially in the era of Network 2.0?

This article will walk you through the concept of resource utilization, its importance in FedEx contracting, and how CSPs can adapt to upcoming changes to stay competitive and thrive.

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Topics: Business Results, FedEx, Business, Cash flow, CSP, efficiency, Driver, Utilization

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