Is your company paying more than $1 million a year in parcel fuel surcharges?
Most shippers never add up their fuel surcharge as a single line. Enter your volume and average charges to see the annual total, how close it is to $1 million, and what a lower negotiated rate is worth.
Results
- Fuel spend = packages × (net transportation + fuel-eligible accessorials) × share subject to fuel × fuel percentage.
- A reduction in percentage points comes off the published rate; a 20% fuel discount on a 30% surcharge is 6 percentage points.
How this is calculated
Fuel surcharges apply to net transportation charges after discounts, and to the accessorial charges on each carrier’s fuel-eligible list. This calculator multiplies your volume by both, then by the surcharge.
The default surcharge is this week’s UPS Ground rate, updated automatically each week.
Rates shown as defaults come from carrier publications or each carrier’s published table applied to the EIA price; see the methodology. Estimates and examples are labeled. Results are illustrative and do not represent any carrier’s reported financial results.
Questions
How much does a 1-point fuel reduction save?
One percentage point of every dollar subject to fuel. On $4 million of fuel-eligible spend, that is $40,000 a year.
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Logistics Contract Optimizer reviews parcel, LTL and truckload agreements for free. Clients typically recover 3% to 15% of freight spend, and with savings-share pricing there is no fee without savings.