I see it all over but dont understand how it works, all I know is it is some amount given to drivers to offset fuel cost. But wondering how much is it say diesel is 4.25 a gallon, do you get all that credited or a percentage or????

Someone else can correct me on this if I got it wrong, but the way fuel surcharge is figured is to take the current average fuel price, subtract the base rate of 1.35 from that. Then you calculate 1 cent per every 5 cents of the price difference, and that is your fuel surcharge. So with your 4.25 per gallon, the fuel surcharge would be .58 per mile. 4.25 - 1.35 = 2.90 / 5 = .58.

That fuel surcharge is multiplied by the number of miles for the load you are hauling, and added to the invoice along with the base rate for the load, and any extras such as detention pay, etc.

If you are working with a broker, make sure your broker doesn't apply their commission to the fuel surcharge. There are some that will take a percentage of it, and some that won't pass it on at all. Check a broker out as much as they will be checking you out. They will be checking your authority, insurance, and safety record. If you are leased to a company, they will have their own fuel surcharge policy in place.

If I got any of this wrong, I hope someone else will correct me. I'm working off information I have found elsewhere on the forum, and I think I am remembering it correctly. I have made it a point to learn about this topic, as I plan to become a freight broker.

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Your correct. Just watch out for the Brokers they love to take a cut of it. Thats the formula I use, I been charging a Fuel Surcharge ever since the prices went up.

So the way I figure it if you get 6 mpg and fuel is 4.25 thats .708 cpm, and you get a surcharge of .58 the true out of pocket expense for fuel is only .128 cpm? Not to bad.

The problem is with FSC added to invoice many carriers don't pay FSC on deadhead miles . Hotshotters with medium duty or 1 ton trucks have an advantage on LTL loads . They get better mpg and offer a lower FSC .

Are you owner operator or company driver? Threre's a national avg. thats used and O/O get all or some of the fuel surcharge.Does not apply to company drivers.

Nope no o/o here just was curious is all