How the Fuel Surcharge Works

Many shippers mistakenly think the Federal Government sets the Fuel Surcharge the carrier charges you.  This is not true.  While the majority of all carriers use the US Department of Energy’s weekly diesel fuel price survey as part of it’s formula, each carrier sets its own scale.   For example some carriers charge 15% for fuel at $3.50 per gallon while others charge 28%.  It is within each carrier’s right to set its own rate… including Fuel Surcharge.

Almost all LTL carriers calculate a fuel surcharge based upon a percentage of the discounted transportation charge.  Accessorial services such as liftgate delivery aren’t factors.  Rail and intermodal usually do the same.  For over-the-road truckload shipments, most carriers charge on a per miles basis (eg. $3.50 per gallon = $.25 per mile).

ShippersEdge automatically calculates the fuel surcharge based upon each carrier’s FSC scale.  Every Monday night we record the most recent DOE diesel price survey so when you rate your next shipment the FSC will be accurately computed.

We will have more information on the Fuel Surcharge at a future date.