User:TDTechFlex

Fuel Surcharge
A charge imposed by carriers and freight shippers on manufacturers that is added to a freight delivery fee, usually due to the varying cost of diesel fuel.

The charge is a percentage fee that is based upon the U.S. National Average Diesel Fuel Index. The fuel surcharge will remain in effect by trucking companies to manufacturers and shippers as long as the U.S. National Average Diesel Fuel Index remains at or above $1.10-$1.15 per gallon.

In order for a freight shipper to charge a surcharge for a load of freight, several things need to happen. Namely, the surcharge should be added to a total load fee and calculated accurately by the trucking company or freight broker so that the charge can be agreed to by the manufacturer or shipper. Once a company has taken the freight load and subsequently bills the shipper, the correct amount should be billed, a step that is often made difficult by changing fuel prices.

The way a fuel surcharge is determined is fairly simple. The base rate for diesel fuel ($1.10-$1.15) is subtracted from the current price of diesel fuel. That total is divided by 5 or 6 (which stands for 5 or 6 mpg - the avg mileage of a loaded commercial truck). This final total is the fuel surcharge that is multiplied by the total number of miles a load is to be driven.

Web Resources

Weekly On Highway Diesel Fuel Prices 

Surcharge Calculator