What is a fuel surcharge?

A fuel surcharge generally refers to freight charges resulting from fluctuating fuel prices. There is no single method of calculating a fuel surcharge; each company has its own way of calculating fuel surcharges.

Retail price is the common factor used in the formulas for calculating fuel costs by truckers and shippers. Major fuel carriers provide information on their websites to let users calculate fuel surcharge of a particular time. The method of calculating fuel surcharge is worked out between the shipper and the carrier. There are typically no rules governing the calculations of fuel surcharges, but standard practices do exist.