A fuel surcharge is an additional transport charge intended to adjust pricing when fuel costs change. It may be calculated as a percentage of base freight or by another published index formula.
How is a fuel surcharge calculated?
The provider may link a rate to a fuel index and update it weekly or monthly. The contract should state the index, baseline, lag and applicable freight components.
Illustrative fuel surcharge
| Calculation step | Amount or rate | Result |
|---|---|---|
| Base freight | $4,000 | $4,000 |
| Fuel surcharge rate | 12% | $480 |
| Freight plus surcharge | $4,000 + $480 | $4,480 |
The example excludes other accessorial and tax charges.
What should be verified?
Confirm which charges form the base, effective date, geographic scope, minimums, rounding and whether decreases as well as increases are reflected.
Why do quotes differ?
Providers may use different indices, baselines and update cycles, so the same headline freight rate can produce a different total.
