fuel surcharge

[finbar1]

Can anyone tell me what a fuel surcharge is and how it works?

 

[RichM]

Most carriers have plans in that when the cost of fuel spikes upward for whatever reason the additional costs are charged to the paying party,either shipper or consignee in the form of additional mileage charges. If you are an owner operator buying your own fuel the additional charges are paid to you. If not you are getting ripped off by your company.

 

[RichM]

To furthur add to my last post is that the carriers add on a additional 1-3% in most cases to cover the additional fuel costs.Some customers do have contract tariffs that do not allow for any type of additional charges so if you are dispatched for one of those shippers you will eat the extra fuel costs. These shippers are generally in the automotive supply sector.