Diesel shortages?

[rjohn76]

38 minutes ago, IllianaLancerContra said:

Curiosity question- for leased busses, does the leasing fee include fuel?  If so, I suspect there is some fine print in the contract that says ‘if fuel costs more than $x, the lessee pays more’.  

From my understanding, it varies based on the contract negotiations each organization has with their carrier.

Many carriers will provide an "all in" quote based on the planned itinerary/schedule.  That "all in" quote would cover all expenses including fuel.  Those contracts typically have a provision in them that allows the carrier to impose a surcharge within a certain period prior to the execution of the contract if fuel prices have increased (typically between 14-30 days before travel starts).  That surcharge is typically capped at a certain percentage of the original quote, but again... attention to the fine print is key.  Most of those contracts also include a force majeure clause that allows the carrier to alter or void the contract if certain defined conditions prevent them from executing the contract as originally outlined (ex. fuel shortage, war, acts of God, etc...).

[keystone3ply]

6 hours ago, IllianaLancerContra said:

Curiosity question- for leased busses, does the leasing fee include fuel?  If so, I suspect there is some fine print in the contract that says ‘if fuel costs more than $x, the lessee pays more’.  

Charter contracts for our band program have always included a "fuel surcharge" that kicks in if fuel rises to a certain amount.  Most years it has never been an issue.  It did engage this past May, but it wasn't a huge amount.  Our band parents were able to absorb the additional fee per bus.  

To date, we have not had an increase if we need to use our school systems "cheese wagons".  (Most of our new fleet are now propane burners.). We'll have to wait & see if propane reaches a level that requires an increase per mile.     

Edited June 8, 2022 by keystone3ply
cx

[IllianaLancerContra]

11 hours ago, rjohn76 said:

From my understanding, it varies based on the contract negotiations each organization has with their carrier.

Many carriers will provide an "all in" quote based on the planned itinerary/schedule.  That "all in" quote would cover all expenses including fuel.  Those contracts typically have a provision in them that allows the carrier to impose a surcharge within a certain period prior to the execution of the contract if fuel prices have increased (typically between 14-30 days before travel starts).  That surcharge is typically capped at a certain percentage of the original quote, but again... attention to the fine print is key.  Most of those contracts also include a force majeure clause that allows the carrier to alter or void the contract if certain defined conditions prevent them from executing the contract as originally outlined (ex. fuel shortage, war, acts of God, etc...).

 

6 hours ago, keystone3ply said:

Charter contracts for our band program have always included a "fuel surcharge" that kicks in if fuel rises to a certain amount.  Most years it has never been an issue.  It did engage this past May, but it wasn't a huge amount.  Our band parents were able to absorb the additional fee per bus.  

To date, we have not had an increase if we need to use our school systems "cheese wagons".  (Most of our new fleet are now propane burners.). We'll have to wait & see if propane reaches a level that requires an increase per mile.     

Thanks.  I hope whomever signed the bus contracts for the various Corps was aware of this when they signed.

[DrummerParent]

1 hour ago, IllianaLancerContra said:

 

Thanks.  I hope whomever signed the bus contracts for the various Corps was aware of this when they signed.

I just did a Google search on what charter bus companies were charging as a fuel surcharge.  The first company that popped up had a couple interesting tidbits.  First, was that if the customer paid within 10 days of the quote, they would not be liable for any surcharge that wasn’t already included in the quote.  The second is that they listed their surcharge.  At $6.00 per gallon (hopefully we don’t get there on average), the surcharge was $160 per day.  So, about $30k for 4 buses for 45 days.  About $20k based on $5 per gallon.  I imagine corps that aren’t locked into a contract that includes the fuel surcharge, they might be soliciting donations.  Of course, there’s still the remainder of the fleet including the tractors that probably aren’t under any type of fuel contract.

[IllianaLancerContra]

1 hour ago, DrummerParent said:

I just did a Google search on what charter bus companies were charging as a fuel surcharge.  The first company that popped up had a couple interesting tidbits.  First, was that if the customer paid within 10 days of the quote, they would not be liable for any surcharge that wasn’t already included in the quote.  The second is that they listed their surcharge.  At $6.00 per gallon (hopefully we don’t get there on average), the surcharge was $160 per day.  So, about $30k for 4 buses for 45 days.  About $20k based on $5 per gallon.  I imagine corps that aren’t locked into a contract that includes the fuel surcharge, they might be soliciting donations.  Of course, there’s still the remainder of the fleet including the tractors that probably aren’t under any type of fuel contract.

My experience is that Drum Corps are always soliciting donations, but I agree with your point.   

[keystone3ply]

3 hours ago, IllianaLancerContra said:

 

Thanks.  I hope whomever signed the bus contracts for the various Corps was aware of this when they signed.

 

1 hour ago, DrummerParent said:

I just did a Google search on what charter bus companies were charging as a fuel surcharge.  The first company that popped up had a couple interesting tidbits.  First, was that if the customer paid within 10 days of the quote, they would not be liable for any surcharge that wasn’t already included in the quote.  The second is that they listed their surcharge.  At $6.00 per gallon (hopefully we don’t get there on average), the surcharge was $160 per day.  So, about $30k for 4 buses for 45 days.  About $20k based on $5 per gallon.  I imagine corps that aren’t locked into a contract that includes the fuel surcharge, they might be soliciting donations.  Of course, there’s still the remainder of the fleet including the tractors that probably aren’t under any type of fuel contract.

Oh I'm sure the administration know the fine print when they sign a charter contract. 

Most charter contracts have incentives for a larger deposit or early payments.  But dealing with state school accounts, most states have a law where you can't pay for goods or services until they are rendered or received.  The Purchase Order process can be tedious at times for some vendors.  

But there are exceptions to the PO process for travel companies when paying for large trips.  If you use a travel company, they have to pay the vendors your school will be using for hotels, tickets, admission, food, etc.  Some programs will let the travel company handle the charter company.  I always like to handle them separately especially if you have a relationship with that bus company.           

[keystone3ply]

45 minutes ago, IllianaLancerContra said:

My experience is that Drum Corps are always soliciting donations, but I agree with your point.   

I always love the donation gas can at their sovie truck.  Anything helps! 😁

[OldSnareDrummer]

46 minutes ago, IllianaLancerContra said:

My experience is that Drum Corps are always soliciting donations, but I agree with your point.   

So we'll all probably get emails from corps this summer we've financially supported in the past saying "Help, we're stuck in Pigsknuckle, Arkansas, please send gas?"  

 

[keystone3ply]

3 minutes ago, OldSnareDrummer said:

So we'll all probably get emails from corps this summer we've financially supported in the past saying "Help, we're stuck in Pigsknuckle, Arkansas, please send gas?"  

 

When I watch a former student rehearse this summer, my care package will include Gatorade, Oreos, & a 5 gallon can of diesel.  😁  

Edited June 8, 2022 by keystone3ply
cx

[DrummerParent]

51 minutes ago, IllianaLancerContra said:

My experience is that Drum Corps are always soliciting donations, but I agree with your point.   

Haha- true, but I expect they get more donations when they can tie a specific “abnormal” need to it.   “Hey, we all know gas prices have really increased the last couple months.  Help Corps X cover these unexpected expenses.”