A Look at the Fuel Surcharge Situation

Global fuel markets continue to face uncertainty, and for shippers, that means transportation costs can change quickly. When crude oil prices move, diesel prices often follow. The price of diesel isn't determined solely by the price of crude oil though. Refinery capacity, regional fuel inventories, seasonal demand, and distribution costs all play a role.  

For truckload and LTL shippers, changes in diesel prices can quickly translate into higher fuel surcharges. And depending on how your carrier calculates those surcharges, your costs may increase faster than you expect.

Not every shipper experiences fuel price changes the same way.  Here's something that might surprise you: Your fuel surcharge isn't necessarily nonnegotiable.