Fuel surcharge

A charge intended to adjust freight revenue when diesel prices move above a contract baseline.

Why It Matters

Fuel surcharge affects fuel-cost estimates used in freight pricing or route math. It is an estimate unless the contract defines the formula.

How It Shows Up

Example

If a contract uses a $1.25 base fuel price, $4.00 current diesel price, 6 MPG and 500 loaded miles, the surcharge estimate is (($4.00 - $1.25) / 6) x 500, before any contract-specific rounding.

Common Mix-Up

A fuel surcharge is not the same as fuel card savings. One affects freight revenue, while the other affects fuel purchase cost.

What to Check

Questions to Ask

Related Tools

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