Fuel Surcharge

Fuel Surcharge (FSC) is a variable fee applied to freight rates to cover the cost of fluctuating diesel prices. Since fuel accounts for a significant portion of a trucking fleet's operating expense (often 30% or more), fixed annual rates could lead to massive losses during global energy spikes.

The Index-Based Logic:

• Standard Base: The fuel price established when the master transport agreement was signed.
• Step Escalators: Most professional SLAs use a 'Step Multiplier' where every $0.10 increase in fuel triggers a set percentage increase in freight.

Logistics managers use this tool to transparently audit carrier invoices. By using a public index (like the EIA Weekly Diesel Index), both shippers and carriers can maintain a fair, neutral mechanism for cost adjustments without constant manual renegotiation.