A fuel surcharge is one of the most common fees shippers will find on their freight bills — especially if they’re using LTL service. While it’s certainly not restricted to that particular mode, fuel surcharges are typically applied to LTL shipments to help offset the costs associated with transporting these goods. Take a look at why they’re applied, how they’re calculated, and get tips for reducing their impact.
Because fuel is one of the most expensive components of trucking transportation, a fuel surcharge is applied to help cover operating costs. Even when national fuel prices dip, many industries — taxi services, airlines, delivery companies, etc. — need to continue charging fuel surcharges for two main reas Rates change frequently. Gas prices can change day to day, and fuel costs aren’t consistent throughout the country. The fuel surcharge helps balance these differences so shippers aren’t being charged too much and carriers aren’t charging too little. Diesel prices are usually higher. Even though gasoline prices may be low, that’s not always the case for diesel fuel. That’s why you may see a change in the index even when you’re paying less at the pump for gasoline.