Daily fuel prices right here at fast cool semis.

Diesel and fuel prices have risen considerably, but freight rates stay the same. How does an owner operator or independent trucker manage? The answer... A fuel surcharge. A fuel surcharge is a fee that can be added to the freight charges, and they don’t require governmental approval and you do not need to file an application with DOT to implement a fuel surcharge.

If you are brokering your own freight, you are losing money if you are not assessing a fuel surcharge. Everyone else is applying it, why are you giving up your money?

If you are using a broker, ask them if they are assessing a fuel surcharge on the loads you're hauling for them.

Notify your broker that you expect a fuel surcharge for hauling his freight. You should also let him know that you know how to compute the surcharge. If he dodges the issue or makes excuses, you need to find another broker!

These fuel surcharges are:
• based on the average price of fuel in each region for the week indicated.
• Assumes your truck gets an average 5 miles per gallon, and
• that a fuel surcharge per gallon is the difference between the average fuel price in your region and $1.10 (standard industry benchmark price).

To calculate the per mile surcharge:

To maintain your required level of profitability, you should begin imposing a fuel surcharge when the price of fuel goes above $1.10 per gallon. You must assume that your basic freight rates cover your costs when fuel is $1.10 and lower. When the price exceeds $1.10 per gallon, you should impose a fuel surcharge to recoup those higher costs.

The formula that AITA recommends to calculate the surcharge for increased fuel costs is designed to reimburse you for increased fuel costs.

You need the following information:
• The total miles from point of origin to destination;
• The average miles per gallon for your truck ( Our example will use 5 mpg);
• The average price of fuel for that day in the region where you pick up the load (check the EIA at the web address above) Our example will use $1.669 per gallon
Most motor carriers use an average benchmark fuel price of $1.10 per gallon

Now do the math

Increased Fuel Costs:
Compute your increased fuel costs per gallon used: Subtract the Benchmark price from the Average Price, or, in our example, $1.669 - $1.10 = $0.569 or 56.9 cents per gallon.

The increased cost of fuel per gallon is 56.9 cpg

Miles Per Gallon:
Compute the efficiency of your truck. Divide the distance you travel between fill ups by the number of miles traveled, yielding the average miles per gallon. Example, if you travel 1787 miles and used 344 gallons of fuel, you averaged 5.2 miles per gallon.

Compute the fuel surcharge per mile:
Divide the miles per gallon figure into the increased cost per gallon, which gives you the per mile surcharge. Our example is 5.2 mpg into 56.9 cpg which equals 10.9 cents per mile surcharge.

Total Fuel Surcharge:
Multiply this per mile surcharge times the total miles driven, and you get the total fuel surcharge amount to be assessed the shipper. Our example is 10.9 cpms times 1787 miles equals $194.78 for the load.

Remember:
You do not need to get government approval
You do not need to file an application with DOT to implement a fuel surcharge.
If you’re not charging a fuel surcharge, you are supplementing the shipper;
If your broker is not paying you a fuel surcharge, he probably owes you a kiss, because he has surely been screwing you.