Fuel Surcharges

Among the most important costs associated in the world of shipping freight by truck are fuel surcharges. These fuel surcharges are extra fees that carriers include to cover the cost of diesel gasoline. The fuel surcharge has been around for a few decades now and is likely to stay for the future. Usually, a fuel surcharge is built into the freight shipping rates for trucking.

What factors determine the fuel surcharge?  In the past, fuel surcharges might be based on a national average price, but now the route of the truck’s trip plays a factor for some carriers. Although the mpg of the truck plays a role in determining each carrier’s fuel surcharge, the biggest factor is still the US National Average Diesel Fuel Index. If the price of gasoline continues to climb, the US National Average Diesel Fuel Index will rise and then the price of shipping could rise. And then the cost of goods might increase too. Supply chains do not want to see their prices increase and they certainly do not want to raise the cost of their goods to combat increasing fuel surcharges.

So what should a supply chain do to gain a better handle in a trucking world with increasing fuel surcharges? The best thing that a supply chain can do is to work with a trusted freight forwarder who can efficiently plan ahead. The freight forwarder can also consolidate shipments, offer LTL shipping and work with their national network of carriers to ensure that you get the best trucking rate possible.