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
It happens when you least expect it. Your phone rings early in the morning, and one of your key drivers tells you they are quitting. Suddenly, you have a full route sitting on the floor, and panic sets in.
You scramble to post a job ad, hoping to find a qualified candidate before your service levels plummet. You ask your remaining team to pick up the slack, pushing them to their limits. You rush through interviews, desperate to put a warm body in the driver's seat.
This is the chaotic reality of reactive recruiting. When you only look for drivers after a role opens up, you place immense pressure on your entire operation. Consistent recruiting, on the other hand, transforms hiring from an intense, short-lived crisis into a low-impact, long-term strategy.
In fact, the most basic of basic keys to running a stable FedEx-based transportation operation is to always have driver candidates at the ready.
Here is how shifting your mindset to "always be recruiting" can save your business, protect your team, and improve your bottom line.
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Topics:
Driver Recruiting,
FedEx,
Management,
Network 2.0,
Fleet Management,
Team Building
Lately, we’ve been seeing a trend that is honestly pretty concerning. We are talking to more and more contractors who are selling parts of their business—or even the whole thing—by selling shares of their companies to unwitting buyers via the transfer of shares of company stock, without properly addressing the reassignment of their operating agreement.
There is a thought process, possibly being fueled by some unscrupulous brokers, that is leading some to think that, "The company name isn't changing, so why does it matter?" But in the eyes of the contract, it matters a lot. We’ve seen people put their entire business at risk because they didn't realize that changing who owns the company is just as big a deal as changing who drives the trucks.
Wait! Read This First: > Before we dive in, let’s get one thing straight: We are not attorneys. We don't work for FedEx, and we aren't here to give you legal advice or tell you exactly how FedEx will act. We are just a team that has spent years in the trenches with contractors like you. We’ve seen almost every situation you can imagine, and we want to share what we’ve learned so you don’t make a costly mistake.
We aren't here to scare you, but we do want to wake you up. Whether you’ve been a contractor for ten years or you are looking to buy your very first operation, you need to understand that you can’t just "hand off" this business like a relay baton. There is a specific process you have to follow, or you might find yourself owning a company that no longer has a contract to operate.
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Topics:
FedEx,
Business,
Investment,
Margins,
Fleet Management,
Plan,
Investor,
Stock,
Sale
Many successful FedEx contractors reach a point where they are ready to grow. With reliable returns and strong cash flow, a FedEx contracting business is an attractive model for expansion. However, this growth brings a critical decision: should you expand your operations close to home or pursue opportunities in remote locations?
While expanding can significantly boost your earnings power, the location of that new operation can make or break your success. We've compiled many of the common lessons and experiences from those who have already traveled this path and the findings are below.
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Topics:
Business Tools,
Business Planning,
Business,
Investment,
leadership,
CSP,
Fleet Management,
Expansion,
Multi-Facility
Expanding your FedEx operation into a new terminal is a significant undertaking. It’s an opportunity for massive growth, but it also comes with a unique set of challenges. From securing trucks and drivers to engineering new routes, the process can feel overwhelming. However, with the right strategy and support, you can turn this complex venture into a major success.
Recently, eTruckBiz had the chance to speak with Dan Barry and Vince Stempien of Dan Barry Enterprises, two service providers from the Detroit area who just stood up a new operation in the Ann Arbor terminal. Their experience provides a valuable roadmap for any contractor considering a similar expansion. They grew from five trucks in 2017 to running 17 on their busiest days in Detroit. Their consistent performance, including achieving "Entrepreneur of the Year" two years in a row, earned them the opportunity to expand.
However, the new opportunity was different. The Ann Arbor service area was more rural, with a 45-50 minute drive from the terminal to the CSA. When the previous contractor walked away unexpectedly, Dan and Vince were asked to start the very next day—a full month ahead of schedule. They stepped up, but the sudden start created immense pressure.
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Topics:
Business Structure,
Business Tools,
Driver Recruiting,
Business,
Network 2.0,
Fleet Management,
Plan,
Expansion,
Business Growth System,
FRO,
Multi-Facility
As you know, the FedEx space is evolving rapidly, and along with it comes an unprecedented opportunity. Network 2.0 initiatives are reshaping the landscape, creating additional pathways for new revenue. Ambitious service providers can expand from single-facility operators to multi-facility enterprises. This transformation represents the future of FedEx contracting—but it also introduces complexity that can overwhelm unprepared contractors.
The difference between thriving expansion and operational chaos comes down to one critical factor: standardization. Contractors who implement consistent administrative systems and operational processes across all locations position themselves for sustainable growth.
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Topics:
FedEx,
Bookeeping,
Management,
Payroll,
Business,
Contract,
Network 2.0,
Software,
Fleet Management,
CSA,
Expansion,
Grow,
AdminIQ,
Business Growth System
How to Prepare for Peak Season: Expert Recommendations for FedEx Contractors
Peak season is right around the corner, and it’s essential to have your team and resources fully prepared for the busiest time of the year. Whether you’re a seasoned contractor or new to the game, having a solid plan in place is critical to maintaining operational efficiency and meeting customer expectations.
At eTruckBiz, we recently hosted a webinar outlining best practices and our Peak Preparation Checklist to help FedEx contractors navigate the challenges of the upcoming peak season. Below, we’ve compiled the key takeaways and recommendations to ensure you're ready to thrive during the busiest weeks of the year.
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Topics:
FedEx,
FedEx Ground,
Holiday Season,
fedex ground contractors,
CSP,
Fleet Management,
CSA,
peak
In the dynamic world of logistics, managing maintenance records efficiently is paramount to ensuring fleet performance and regulatory compliance. With eTruckBiz's advanced systems and apps, mastering maintenance records has never been easier. Let's delve into how eTruckBiz empowers contractors to streamline maintenance management and optimize fleet operations:
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Topics:
fedex ground contractors,
fdx,
MMR,
Fleet Management