What is fuel surcharge?

A fuel surcharge is an additional fee charged by carriers and logistics companies to compensate for fluctuations in fuel costs. It serves as a mechanism to cover the rising cost of fuel and allows carriers to protect their profit margins.

How is fuel surcharge calculated?

Fuel surcharges are often calculated as a percentage on top of the base transportation rate. Let’s say the base transportation rate for a freight shipment is €100. With a 10% fuel surcharge, the calculation would be as follows:

Fuel surcharge = (10/100) * €100 = €10

So the total price including the fuel surcharge would be €100 + €10 = €110. This surcharge offsets additional costs due to fluctuations in fuel prices. However, the exact percentage and formula may vary depending on the carrier and their specific agreements or calculation methods.

Why does fuel surcharge make comparing rates more difficult?

Fuel surcharges make comparing rates more difficult for a shipper because the amount and methods of calculating surcharges can vary between carriers. This can lead to disparity and inconsistency when evaluating bids, making it more difficult to accurately and directly compare rates between different providers.

How is Cargors solving this?

Cargors solves this problem by standardizing the fuel surcharge, providing consistency and transparency in the industry. We aim to create a common framework that carriers can join, which will make it easier for shippers to compare the fuel surcharges of different carriers. By continuously connecting carriers to this framework, we promote a standardized approach and simplify the rate comparison process for shippers.

We go a step further by offering all-in rates as much as possible. This means we already include the fuel surcharge and other relevant costs in the rate, giving shippers a clear and complete picture of the total cost. This makes it easier for them to compare rates without worrying about hidden surcharges. This offers shippers greater transparency and convenience in their shipping processes.

Overview Fuel surcharge*

The amount of the fuel surcharge in a calendar month is determined every first working day of that month based on the average diesel price in the Netherlands of the previous calendar month, as published by Transport en Logistiek Nederland (TLN).

Percentage Diesel price from Diesel price up to
1% 1.000 1.049
2% 1.050 1.099
3% 1.100 1.149
4% 1.150 1.199
5% 1.200 1.249
6% 1.250 1.299
7% 1.300 1.349
8% 1.350 1.399
9% 1.400 1.449
10% 1.450 1.499
11% 1.500 1.549
12% 1.550 1.599
13% 1.600 1.649
14% 1.650 1.699
15% 1.700 1.749
16% 1.750 1.799
17% 1.800 1.849
18% 1.850 1.899
19% 1.900 1.949
20% 1.950 1.999
21% 2.000 2.049
22% 2.050 2.099
23% 2.100 2.149
24% 2.150 2.199
25% 2.200 2.249
26% 2.250 2.299
27% 2.300 2.349
28% 2.350 2.399

*At Cargors, we continually strive to connect carriers to our standardized fuel surcharge. Because this is a lengthy process, some carriers may still use their own percentage when calculating the fuel surcharge.