Freight fuel surcharge explained: what it means in your quote

Semi-truck backed into a loading dock door at the Pelham terminal

The short answer

A fuel surcharge (FSC) is a freight pricing component that adjusts for changes in diesel prices, so the base rate can stay stable. To understand yours, identify the calculation basis, applicable rate or amount, effective period and whether it is already included in the quoted total. There is no universal percentage, and this guide does not publish Pelham’s current rate.

How the calculation works

Fuel surcharges vary by carrier and lane. Most quotes use one of two methods:

1. Percentage method

The most common: eligible base charge × applicable surcharge percentage = fuel charge. First confirm what the “eligible base” includes; it is often the linehaul charge only, without additional services.

2. Fixed amount or per-mile method

Some carriers, especially for full truckload, use a stated amount or a per-mile surcharge linked to a diesel price index. Follow the quote’s agreed basis rather than applying a percentage from elsewhere.

At Pelham: contract rates add a fuel percentage that goes up or down with fuel prices. Ask the team which percentage applies to your account or quote.

This explains the arithmetic, not a published Pelham rate.

Four questions that resolve most confusion

  1. Is fuel included? Is the quoted price all-in, or will a fuel surcharge be added to the invoice?
  2. What is the base? Which charge or quantity is the surcharge calculated on?
  3. Which date applies? Surcharges are often updated weekly or monthly: is the rate set by the booking date, the ready date or another date?
  4. How long is the quote valid? Fuel prices move quickly; check how long the rate applies.

Avoid counting fuel twice

An all-in quote may already include fuel. A base transport figure may list it separately.

Common mistake: adding a fuel percentage to an all-in total because you assumed fuel was not included.

Better practice: compare the final total of each quote, not the base rates alone, and identify included components and any conditional charges. Do not add a separate fuel amount to an all-in total unless the quote instructs you to do so.

Why an old percentage may not apply

A fuel surcharge is not a government tax or a single rate shared by every trucking company. It changes with current diesel prices, often measured by a published index such as the U.S. Department of Energy’s weekly diesel average, and with each carrier’s lane and operating costs. A historic screenshot, a six-month-old quote or another carrier’s fuel table does not establish the amount applicable to your shipment. Confirm the basis and validity with the team. If the route, date or load changes, ask whether the existing quote remains valid.

Clarify your quote before booking

For an existing quote, contact Pelham with its reference and ask for the calculation basis and included total. For a new shipment, request a freight quote. How much it costs to ship a pallet explains the other shipment details needed for pricing.