Why McLeod Is Applying a Fuel Adjustment Factor to Mobile Crane Charges

Fuel Adjustment Factors have long been common in freight, transport, and Hiab work. For mobile cranes, McLeod has generally preferred to keep pricing stable to give customers greater certainty when planning and budgeting projects.

That approach has worked well in more stable conditions. It is less workable now.

Diesel prices have become more volatile, and recent movements have made it harder to absorb fuel fluctuations within fixed crane rates for any meaningful period. As a result, customers may now see a Fuel Adjustment Factor, or FAF, applied to mobile crane work.

What is a Fuel Adjustment Factor?

A Fuel Adjustment Factor is a variable surcharge that reflects changes in fuel costs.

Rather than permanently increasing base rates to cover uncertainty, a FAF separates fuel-related cost movements from the core crane charge. It can move up or down with the market.

Why apply it to mobile cranes now?

Mobile crane operations rely heavily on fuel. Fuel affects transport to the site, equipment repositioning, and the wider fleet supporting lifting operations.

When diesel prices move sharply, the cost impact is immediate. In the current market, that volatility is too significant to continue absorbing within fixed crane rates alone.

Why not just increase crane rates?

A permanent rate increase is not always the fairest response.

If diesel prices ease, customers would still be paying a higher base rate that was driven by temporary fuel pressure. A FAF is a more transparent way to respond because it keeps the core crane rate separate from fuel volatility.

That means:

• The base crane rate remains more stable

• The fuel component can be adjusted with market movement

• The adjustment can move up or down

  
  

What customers can expect

Where a Fuel Adjustment Factor applies, it will be shown separately so customers can clearly see what relates to fuel movement and what relates to the core service.

This is a response to current market conditions, not a change in McLeod’s approach to fair pricing.

Our focus remains the same:

• reliable crane services

• safe and compliant operations

• clear, defensible pricing

• avoiding unnecessary long-term increases to base rates when a variable adjustment is more appropriate

In the current environment, applying a FAF to mobile crane work is a practical and transparent response to fuel volatility.

McLeod will continue to review conditions carefully and communicate any adjustments clearly.