How do Fuel Surcharges Work in the Trucking Industry?

Fuel SurchargesFor businesses that transport their products within North America and carriers, protecting their bottom line from volatile fuel prices is an ongoing concern. One way to garner some protection from a fluctuating fuel price is the fuel surcharge.

What is Fuel Surcharge?

The fuel surcharge is the total cost for fuel usage. It is a contract between the shipper and another party that sets a standard rate for the fuel and how much will be paid above the base rate, and what fuel price triggers the surcharge, or no surcharge at all. Continue reading