Published by Logistics Contract Optimizer, Green Bay, Wisconsin. Independent; not affiliated with any carrier.(920) 401-6815
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Five years of rate increases, surcharges and growth

Model base rate increases, fuel percentages, accessorial growth and volume for up to five years. Fuel is applied to each year’s transportation charges, not compounded on itself.

Your inputs

Defaults update weekly from live data
$
%
%

Defaults to this week’s UPS Ground rate.

points
$
%
%

Results

5-year total$18,152,743
Final year$4,273,606
Fuel over the period$3,406,141

Annual total

Year 1
$3,040,000
Year 2
$3,310,132
Year 3
$3,604,314
Year 4
$3,924,692
Year 5
$4,273,606
YearTransportationFuel %FuelAccessorialsTotal
Year 1$2,000,00029.50%$590,000$450,000$3,040,000
Year 2$2,181,54029.00%$632,647$495,945$3,310,132
Year 3$2,379,55828.50%$678,174$546,581$3,604,314
Year 4$2,595,55128.00%$726,754$602,387$3,924,692
Year 5$2,831,14927.50%$778,566$663,891$4,273,606
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How this is calculated

Transportation compounds with GRI and volume. Fuel % changes by fixed points per year and is applied to that year’s transportation only.

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

Do fuel surcharges compound?

No. Fuel is a percentage of each invoice’s eligible charges. It rises with the base, but it does not compound on prior fuel.

Lock in terms that cap the next five years.

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