How to Determine Fuel Surcharge

Fuel Surcharges
Somebody is getting them, and it should be YOU!!!


Diesel and fuel prices have risen considerably, but freight rates stay the same. How does an owner operator or independent trucker manage? The answer... A fuel surcharge. A fuel surcharge is a fee that can be added to the freight charges, and they don’t require governmental approval and you do not need to file an application with DOT to implement a fuel surcharge.

The Facts!!!

If you are brokering your own freight, you are losing money if you are not assessing a fuel surcharge. Everyone else is applying it, why are you giving up your money?

If you are using a broker, ask them if they are assessing a fuel surcharge on the loads you're hauling for them.
A. If yes, have they been paying it to you, or keeping it for themselves? Then you need a new broker, because this guy is screwing you!
B. If no, then you need a new broker because this guy is killing you!

Here’s how you get started!

Notify your broker that you expect a fuel surcharge for hauling his freight. You should also let him know that you know how to compute the surcharge (shown below). If he dodges the issue or makes excuses, you need to find another broker!

If you are brokering your own loads, then notify your customers. You can notify your customers with a faxed memo or letter. You can use the generic letter at Surcharge Letter , all you need to do is replace the customers Name and Address information and date in the appropriate places, put your name at the bottom, sign it, and off you go!

Calculate your own fuel surcharge. It’s easy.

A fuel surcharge should be based on the average retail price of diesel fuel in the region of origination, or where you pick up your load, on the date you pick up this load. This average retail price information, collected by the federal government's Energy Information Administration, is updated every Wednesday. The information is available by phone by calling (202) 586-6966 or you can go to their Web site: http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report.asp