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Supply Chain Expertise and Technology Blog by TMC, a division of C.H. Robinson

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Anatomy of a Fuel Surcharge Program: Part 1

Fuel_2

Does The Choice of Index Matter?

We often hear shippers argue that they can cut the cost of truckload (TL) fuel surcharges by using a low estimate of diesel prices when calculating the charges. The prices are drawn from an appropriate industry index. It’s an appealing theory – but does it work in practice?

The price of diesel is one of the main components of fuel surcharges. Over the next few weeks we’ll look at each of these variables to clarify how changing them impacts TL transportation costs. We’ll round off the series of posts with a general assessment of where we think these programs are headed.  Read More…