Fuel Surcharge (FSC)
An additional charge added to freight rates that fluctuates with diesel fuel prices. Fuel surcharges protect carriers from volatile fuel costs by passing the variable portion of fuel expense to the shipper. The surcharge is typically calculated as a percentage of the linehaul rate, based on the current DOE (Department of Energy) national diesel price index.
Detailed Explanation
An additional charge added to freight rates that fluctuates with diesel fuel prices. Fuel surcharges protect carriers from volatile fuel costs by passing the variable portion of fuel expense to the shipper. The surcharge is typically calculated as a percentage of the linehaul rate, based on the current DOE (Department of Energy) national diesel price index.
Example
When diesel hits $4.25 per gallon, an FTL carrier applies a 28% fuel surcharge to a $2,500 linehaul charge, adding $700 to the total invoice.
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