What Is a Fuel Surcharge in Trucking

Are you trying to figure out what a fuel surcharge means and how the rates apply? You’re in the right place!

While most delivery companies provide a fuel surcharge calculator, the price per gallon owed by the user can vary significantly. In this guide, we’ll explain what a fuel surcharge is, how to calculate it effectively, and review the various shipping prices.

Let’s start with an overview of fuel surcharges in trucking and move on to calculating your shipment's shipping fees using the most accurate formula!

How Does a Fuel Surcharge Work?

The average fuel surcharge rate is determined by subtracting the base fuel price from the average price and dividing the result by the base fuel mileage. Additionally, the delivery area surcharge must be considered before calculating fuel surcharges.

What is the Purpose of a Fuel Surcharge?

The standard shipment or freight surcharge helps balance fuel costs. Since fuel prices fluctuate and trucking routes can vary, this practice has been common since 2005. If the delivery truck takes longer than expected to reach the address or if the route changes, an additional residential delivery surcharge will be added to the fuel expenses.

Here’s how fuel surcharges in trucking are calculated!

How is the Fuel Surcharge Calculated?

To calculate a fuel surcharge, use the surcharge formula or a calculator provided by the delivery company. Knowing how to calculate fuel surcharges helps customers stay informed about the delivery price without worrying about unexpected fees.

Factors Influencing Fuel Surcharge Rates

Several factors can impact the size of the fuel surcharge on your delivery:

• The type of fuel used by the delivery truck. Diesel fuel is commonly used to minimize additional expenses for both the company and the customer.
• Additional shipping surcharges may apply after your delivery. Apart from fuel surcharges, extra services may also incur additional costs.
• The final delivery price will be influenced by base rates, as well as handling fees if there are any complications during delivery.
• It’s essential to be aware of the cost of fuel and any potential oversized package surcharge, depending on your freight or standard shipment.

Fuel Surcharge Formula

After understanding what a fuel surcharge is and the factors contributing to increased delivery fees, let’s review the formula:

1. Original fuel price - Updated fuel price = Difference in fuel cost.
2. Difference in fuel cost / Miles per gallon = Cost per mile.
3. Cost per mile x Distance traveled = Fuel surcharge.

This formula is widely used to calculate surcharges, though delivery companies may have their own policies.

Fuel Surcharge Calculation Examples

Let’s apply the formula to an example:

1. Provide pricing values:
• Original fuel price: $3.50 per gallon
• Updated fuel price: $4.00 per gallon
• Miles per gallon (MPG): 10 MPG
• Distance traveled: 500 miles
2. Fuel cost difference = $4.00 - $3.50 = $0.50
3. Cost per mile = $0.50 / 10 MPG = $0.05
4. Fuel surcharge = $0.05 x 500 miles = $25.00

Now that you know how to calculate average surcharges, let’s move on to understanding current prices.

What is the Current Fuel Surcharge for Trucking?

Knowing the current fuel surcharge allows for more accurate fee calculations. If your delivery company doesn’t provide a calculator, you can use online services or calculate it manually by knowing the average miles per gallon and fuel prices.

How to Check the Current Fuel Surcharge Rates

The best way to calculate a fuel surcharge is by using your delivery company’s calculator. Alternatively, check fuel prices and delivery mileage to get the most accurate results. Always use the latest fuel price information.

What Does 100% Fuel Surcharge Mean?

A 100% fuel surcharge means that the fuel surcharge is equal to the base transportation cost. While the exact meaning can vary, it indicates that the surcharge matches the base price.

Can You Minimize Fuel Surcharges?

To reduce fuel surcharges, consider:

• Using fuel-efficient vehicles and driving techniques.
• Providing the driver with advanced routing software to minimize delivery time.

Can You Minimize Fuel Surcharges?

To reduce fuel surcharges, consider:

• Using fuel-efficient vehicles and driving techniques.
• Providing the driver with advanced routing software to minimize delivery time.
• Opting for alternative fuel options when possible.
• Checking if your delivery company offers discounts or waivers for fuel surcharges with credit card payments.

Wrapping Up

The answer to “what does a fuel surcharge mean in trucking” remains consistent: it’s a fee added to balance fluctuating fuel costs. Use the formula or your delivery company’s calculator to estimate the fuel surcharge for your shipment. Always check with your provider for any specific policies or changes.