What is a diesel fuel surcharge?

A diesel fuel surcharge is a fee assessed by a shipping company or a freight owner-operator for transporting goods by truck. It is a standard fee in the retail transportation industry and is primarily used to balance out gasoline price fluctuations in long-term contracts.

There are no legal requirements for a diesel fuel surcharge. Each transportation company can name their own fee. Most companies have a standard formula that they use in determining the fee, however. The diesel fuel surcharge is primarily intended to ensure that the transporter who is locked into a contract is not stuck in an unprofitable arrangement if fuel prices rise.