Fuel Surcharges Are Up — Significantly

If your freight bills have been higher lately and you're not sure why, there's a good chance fuel surcharges are a big part of the answer.
As of late March 2026, major LTL carriers are applying fuel surcharges above 40% of line-haul charges — a level that represents a meaningful jump from where surcharges sat just a year ago. For context, Old Dominion's current LTL fuel surcharge is over 41%, compared to roughly 26% at the same point last year. That's not a rounding error — that's a significant line item on your freight bill.
For shippers running regular FTL or LTL volume, understanding what's happening with fuel surcharges — and what you can do about it — is one of the more practical cost management conversations you can have right now.

What Is a Fuel Surcharge and Why Does It Exist?

A fuel surcharge (FSC) is an additional fee added to your base freight rate to help carriers offset the cost of diesel fuel when prices rise above a predetermined baseline.
Fuel became standard practice in trucking in the mid-2000s when diesel first hit $4 per gallon. Today, fuel represents roughly 20–30% of a carrier's total operating costs, so rather than constantly renegotiating base rates every time diesel moves, the industry adopted a mechanism that adjusts automatically.

The U.S. Energy Information Administration (EIA) publishes national average on-highway diesel prices weekly, and most carriers tie their surcharge tables directly to that number. Surcharges are typically recalculated each week based on Monday's EIA price. Here's the key thing to understand: the surcharge percentage is applied to your line-haul charges, not just a flat fee. So when surcharges are running north of 40%, a $1,000 line-haul charge could carry an additional $400+ in fuel costs alone.

How Fuel Surcharges Work Differently for FTL vs. LTL

The mechanics matter, because FTL and LTL carriers calculate surcharges differently.
FTL Fuel Surcharges: Per-Mile Calculation
For full truckload shipments, fuel surcharges are typically assessed on a cents-per-mile basis. The calculation looks something like this:

FSC (per mile) = (Current Diesel Price – Base Price) ÷ Miles Per Gallon

If a carrier's contract baseline is $1.30/gallon and current diesel is $3.80, the difference is $2.50. Divide that by an average fuel efficiency of 6.5 MPG and you get roughly $0.38 per mile in surcharge. On a 1,200-mile haul, that adds up to around $456 in fuel cost on top of your base rate.
The base price used in the contract is a critical variable. Carriers and shippers negotiate that baseline at contract time — and the lower the base price, the higher the surcharge when diesel rises.

LTL Fuel Surcharges: Percentage-Based Tables

LTL carriers generally use a published percentage table tied to the EIA weekly diesel price. The table assigns a specific surcharge percentage based on where diesel falls within a range.
For example: if diesel is at $3.75/gallon, your LTL carrier might apply a 32–35% surcharge to line-haul charges. When diesel climbs above $4.00/gallon, those percentages can jump well into the 40% range — which is where many major carriers are right now.
The percentage is applied to line-haul charges (and often other rated services), but typically not to accessorial fees. Carriers publish their FSC tables publicly — it's worth knowing which table your carrier uses and checking it regularly.

Why This Matters More Than You Might Think

Even shippers who watch their freight costs closely sometimes underestimate how much fuel surcharges affect total spend, because the base rate and the surcharge look like separate line items. But they're not separate in terms of your freight budget — they're both part of what you pay to move a shipment.
A few scenarios worth considering:

• LTL shipper with $50,000/month in line-haul charges: At a 40% FSC, that's an additional $20,000/month in fuel costs. A year ago at 26%, it was $13,000. The difference is $7,000/month — or $84,000 annually — for the same shipments.
• FTL shipper running 10 loads per week at 800 miles each: Per-mile fuel costs at current diesel prices can meaningfully shift total cost per load, especially on longer hauls where fuel represents a larger share of the rate.

These are real numbers worth paying attention to — not just line items to accept passively.

7 Ways Shippers Can Reduce the Impact of Fuel Surcharges

You can't control what diesel costs. But you have more leverage than most shippers realize.

1. Understand Your Carrier's Surcharge Table
This sounds basic, but a lot of shippers don't know exactly which FSC table applies to their account. Request it from your carrier or broker. Know the base price threshold, how frequently it adjusts, and what price ranges trigger which percentages. You can't manage what you don't measure.

2. Know Which Carrier's FSC Table Applies to Your Shipments
LTL carriers each publish their own FSC tables, and the percentages vary — sometimes meaningfully — from one carrier to the next. Two carriers moving the same freight on the same day could be applying different surcharge percentages based on their individual tariffs.
When you're arranging LTL shipments through a logistics provider, it's worth asking which carrier's FSC table is being applied to your account and how that table compares to others in the market. Lane coverage, service reliability, and total cost all factor into carrier selection — but FSC structure is a legitimate part of that conversation, especially when surcharges are elevated.

3. Consolidate LTL Shipments Where Possible
Every LTL shipment carries its own line-haul charge, and the FSC is applied as a percentage of that charge. Consolidating two smaller LTL shipments into one larger one — or moving to a partial truckload when volume warrants it — can reduce the number of FSC-applied charges on your bill.
Pool distribution can also work for shippers sending freight to overlapping regions. Consolidating shipments headed in the same direction reduces total line-haul charges, which in turn reduces total FSC exposure.

4. Improve Shipment Packaging and Density
Fuel surcharges are applied to your line-haul rate, and your line-haul rate is influenced by the weight and dimensions of your freight. Poorly packaged freight that wastes cubic space increases dimensional weight, which drives up the base charge — and therefore the FSC applied on top of it.
Tighter packaging, better palletization, and density optimization can reduce the rated weight or class of your shipment, which reduces the base charge the surcharge is applied against.

5. Consider Blended Contract Structures
In volatile fuel markets, locking into a long-term fixed contract can work against you if fuel prices drop — and relying too heavily on spot can hurt when prices spike. A blended approach — using minimum quantity commitments for your predictable core volume while maintaining flexibility on the margins — gives you protection without overcommitting.
Your logistics provider should be advising you on what structure makes sense given your volume patterns and how the fuel market is trending. If that conversation isn't happening, it's worth asking for it.

6. Monitor EIA Prices Regularly
The EIA publishes national average diesel prices every Monday. Most carriers adjust their FSC tables weekly based on that number. If you're tracking EIA prices alongside your freight bills, you'll catch discrepancies faster — and you'll have better visibility into what's coming before you get the invoice.
It takes about five minutes per week to check. For shippers spending significant dollars on freight, it's five minutes worth spending.

7. Work With a Logistics Partner Who Monitors This for You
One of the real advantages of working with an experienced freight broker is that you shouldn't have to figure all of this out on your own. A good logistics partner will monitor FSC trends across the carriers in their network, flag when your rate structure isn't aligned with your freight profile, and bring those conversations to you before you see it on an invoice.
The goal isn't to find the lowest surcharge at all costs — it's to make sure your overall freight strategy accounts for fuel as a real, ongoing variable. That's the kind of visibility a logistics partner like DTS can provide.

Frequently Asked Questions

• Is the fuel surcharge negotiable?
   Generally, no — LTL carriers publish their FSC tables and apply them consistently to all shippers. The percentage is determined by the carrier's tariff and moves weekly with diesel prices. What you can do is make sure the carrier servicing your lanes has a competitive FSC structure relative to others in that market. A logistics provider with visibility across multiple carriers can help you evaluate that.
• Does the fuel surcharge apply to accessorial fees?
   Generally, no — most carriers apply the FSC to line-haul charges only, not to accessorials like liftgate, residential delivery, or detention. That said, some carriers have expanded FSC application to cover additional charge types, so it's worth verifying with your specific carrier's tariff.
• How often does the fuel surcharge change?
  Most major LTL and FTL carriers update their fuel surcharges weekly, typically based on the EIA Monday diesel price report. The new percentage takes effect the following Wednesday and runs through the following Tuesday.
• Can switching from LTL to FTL reduce my fuel surcharge exposure? It depends on your shipment size and lanes. FTL surcharges are per-mile, while LTL surcharges are percentage-based on line-haul charges. For some shipments — particularly those approaching a partial or full truckload threshold — moving to a full truckload may reduce total landed cost, including fuel. Your logistics provider can run that comparison and tell you where the crossover point is for your specific freight.

Fuel surcharges are one of the more visible and consequential variables in freight cost management right now. They're not going away, and with diesel prices where they are, they're likely to remain elevated for the foreseeable future.

The shippers who manage this best aren't necessarily the ones with the most volume — they're the ones who understand their cost structure, ask better questions at contract time, and work with partners who help them see the full picture.

If your freight spend is increasing and you want a second set of eyes on your rate structure and FSC exposure, we're happy to take a look.

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