Fuel Surcharge Explained

Fuel costs are one of the largest expenses in the trucking industry, and fluctuations in fuel prices can significantly impact profitability. To address this, the freight industry relies on fuel surcharges—adjustable fees added to shipping costs to account for changing fuel prices. Whether you’re a trucker, broker, or shipper, understanding fuel surcharges is crucial for fair pricing and cost management.

What Is a Fuel Surcharge?

A fuel surcharge is an additional fee added to the freight rate to help carriers offset fuel cost fluctuations. It ensures that carriers are not burdened by unexpected spikes in fuel prices, allowing them to maintain consistent service levels without the risk of operating at a loss.

These surcharges are usually calculated based on:

• The national or regional average fuel price.
• A base fuel price (a threshold below which no surcharge is applied).
• A pre-determined fuel economy standard (miles per gallon for trucks).

How Is a Fuel Surcharge Calculated?

The most common formula used in the trucking industry is:

Example Calculation:

• Current Fuel Price: $3.66 per gallon
• Base Fuel Price: $1.92 per gallon
• Miles Per Gallon (MPG): 6 MPG
• Per-Mile Fuel Surcharge: ($3.66 - $1.92) ÷ 6 = $0.29 per mile

If the shipment covers 1,000 miles, the total surcharge would be: 1,000 miles × $0.29 = $290

Using the Freight Sidekick Fuel Surcharge Calculator

Manually calculating fuel surcharges can be time-consuming, especially when dealing with multiple shipments or fluctuating fuel prices. To simplify this, Freight Sidekick offers a Fuel Surcharge Calculator that instantly computes surcharges based on current fuel prices and mileage.

How to Use the Calculator:

1. Enter the current fuel price – The calculator updates with the latest fuel price trends, but you can input a custom price if needed.
2. Set the base fuel price – Typically, this is predetermined in freight contracts.
3. Input the average MPG – Use an estimated fuel efficiency based on your truck’s performance.
4. Enter the total miles for the shipment – The calculator will instantly generate the per-mile surcharge and total surcharge.

👉 Try it now: Freight Sidekick Fuel Surcharge Calculator

Why Fuel Surcharges Matter

Fuel surcharges benefit all parties involved in freight shipping:

• Carriers & Owner-Operators: Ensure fuel cost fluctuations don’t eat into profits.
• Brokers: Maintain transparency and consistency in freight pricing.
• Shippers: Understand the cost structure and anticipate price adjustments.

By incorporating fuel surcharges, the industry can fairly distribute fuel costs while maintaining service quality and profitability.

Final Thoughts

Fuel surcharges play a vital role in the trucking industry, protecting carriers from unpredictable fuel price changes while ensuring fair pricing for shippers. Whether you're negotiating rates, managing expenses, or planning shipments, Freight Sidekick’s Fuel Surcharge Calculator provides an easy way to calculate accurate fuel-related costs.

Personalized Assistance

For personalized assistance with your freight transportation, Get a quote today, call 877-345-3838, or email support@freightsidekick.com.