As LTL rate negotiations ramp up this spring, one very important accessorial to identify is the fuel surcharge (FSC). The fuel surcharge for many LTL carriers falls under the general rules of the carrier’s tariff. As a result, the fuel surcharge may be updated by the carrier with proper notification. Often a General Rate Increase (GRI) announcement may include changes to the LTL carrier’s rules tariff, of which the fuel surcharge table is a part.
The challenge is knowing when and what changes will be impacting the fuel surcharge. Changes may include the percentage applied to step in the fuel cost or the bracketing in the FSC table itself can be changed. A slight change in the table may equal what amounts to a general rate increase of 3% to 5% based on fuel alone. To avoid the unknown, it is always best to use a designated fuel surcharge table or lock in the carrier’s fuel surcharge table as a separately negotiated accessorial that is not subject to the carrier’s rules tariff.
For more information on LTL and securing the solution for your business please reach out to our Supply Chain Coach team.
Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”
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