The Impact of Adjusting Truckload Fuel Surcharges

The Impact of Adjusting Truckload Fuel Surcharges
Fuel surcharges became a common occurrence between shippers and carriers starting in August 1999, when diesel fuel prices rose to $1.20 per gallon in the United States. While fuel charges are commonly used, shippers and carriers have often disagreed about how they should be fairly applied, and some shippers persistently attempt to refigure their fuel surcharges in an attempt to reduce their total transportation costs. In order to understand how shippers adjust components of their fuel surcharge, it helps to understand the three primary components that make up a fuel surcharge: the index, the peg, and the escalator.
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