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Central Express Trucking
Lipson, Marc L.; Munoz, Steve Case F-1768 / Published March 14, 2017 / 11 pages.
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Product Overview

The CEO of Central Express Trucking (CXT), was preoccupied as he drove to work one morning in late October 2013. Diesel fuel prices had been a constant concern at the trucking company he had started 22 years ago. Over the last decade, the steady rise in fuel prices had squeezed margins and dampened profits. Yet despite the existence of fuel surcharges in all of CXT's contracts, short-term fuel price fluctuations still drove fluctuations in profitability. On his mind that morning was a proposal from the newest member of his sales team to offer a contract to a customer (shipper) that did not include a fuel surcharge.


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  • Overview

    The CEO of Central Express Trucking (CXT), was preoccupied as he drove to work one morning in late October 2013. Diesel fuel prices had been a constant concern at the trucking company he had started 22 years ago. Over the last decade, the steady rise in fuel prices had squeezed margins and dampened profits. Yet despite the existence of fuel surcharges in all of CXT's contracts, short-term fuel price fluctuations still drove fluctuations in profitability. On his mind that morning was a proposal from the newest member of his sales team to offer a contract to a customer (shipper) that did not include a fuel surcharge.

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