Fuel Surcharge

A fuel surcharge is an additional fee carriers charge to cover fluctuating fuel costs, added on top of base freight rates.

Examples: A carrier quotes $2.00 per mile plus a weekly fuel surcharge tied to the Department of Energy’s diesel price index.

Advantages: Protects carriers from volatile fuel markets and ensures more stable base rates.

Challenges: Adds complexity to shipper invoices and can make budgeting harder.

Real-world example: Most U.S. trucking contracts include a fuel surcharge linked to weekly diesel price averages.

Explain like I’m five: It’s like when ice cream gets more expensive in summer, so you have to pay a little extra each time.

FAQ: Can fuel surcharges be negotiated? Yes, shippers and carriers often set formulas in advance.

Bottom line: Fuel surcharges shift fuel price risk to shippers, making cost management more transparent but variable.