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Savings and negotiation · Flagship tool

What is one point of fuel surcharge worth?

See what 1, 2, 3 or 5 percentage points off your fuel surcharge saves, and why a "20% fuel discount" and "20 percentage points" are very different things.

Your inputs

Defaults update weekly from live data
$
$
%

Defaults to this week’s UPS Ground rate.

points

Results

Saved at 2.00 points$216,000
Value of each point$108,000
A 10% fuel discount equals2.95percentage points, not 10 points

Annual savings by reduction

1 point (28.50%)
$108,000
2 points (27.50%)
$216,000
3 points (26.50%)
$324,000
5 points (24.50%)
$540,000
  • Percentage points come off the rate: 29.50% minus 2 percentage points is 27.50%.
  • A percentage discount is relative: a 10% discount on 29.50% is 2.95 percentage points.
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How this is calculated

Each point = 1% of fuel-eligible spend (net transportation plus fuel-eligible accessorials).

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

Is a 20% fuel discount good?

At a 29.50% published rate it is worth 5.9 percentage points. Whether it is good depends on your volume and other terms.

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Find out how many points your contract should have.

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.

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