Shippers engaging with the less-than-truckload industry continually navigate developments that may affect their businesses and bottom lines. LTL fuel charges are good examples. Carriers apply them to their base rates to offset the rising costs of keeping their vehicles on the road. Although shippers cannot avoid these extra expenses, they can be smarter about them by taking proactive steps to reduce the unwanted effects.
Similarly, carriers need to remain aware of how impactful these extra fees are in helping them manage the costs of rising gas prices. Setting fee structures that apply over relatively short time frames can allow them to remain nimble and raise or lower the charges based on current fuel prices.
Calculate the Average Miles Per Gallon
LTL fuel surcharges help carriers manage the extra costs of filling up their vehicles’ gas tanks. However, those operators should understand that those additional fees may not make up all the difference. One of the most straightforward ways to do that is for company managers to assess the factors within their control. Although models can help them predict the future, those using them should not become overly reliant on them.
As of March 2023, the national average for Class 8 trucks is 6.25 miles per gallon, and carriers used that when calculating surcharges. Fleet managers can calculate the number of trucks they have on the road at any given time and how closely the vehicles’ fuel economy matches that average. Understanding the miles-per-gallon particulars is one of the most reliable ways to determine how much the fuel surcharges will help the company operate.
Keeping trucks well-maintained can also improve fuel efficiency, and fleet managers should scrutinize whether they are doing enough to keep the vehicles in top condition. Keeping the drivers aware of the distances they should be able to go on each tank of gas is also important because that knowledge could provide an early warning that something is wrong that needs a technician’s prompt attention.
Although prices at the pump will fluctuate, the truck’s fuel economy should be less volatile if the responsible parties keep the vehicle in good condition. Once business decision-makers see the overall impact of the LTL fuel surcharges on their ability to keep operating in the green, they can choose whether to change the conditions of terms made with shippers, potentially resulting in higher or lower associated fees.
Understand the Carrier’s Pricing System
One of the complicated realities of LTL fuel surcharges from a shipper’s standpoint is that carriers do not apply them universally. However many use a system whereby the surcharges apply once gas prices cross a stated threshold. However, beyond that, the companies have particulars developed internally. Those differences highlight the need to do thorough research and read the fine print before deciding to do business with a specific option. Some operators prioritize transparency by publishing details about which surcharges apply on particular dates.
For example, one company indicated it would apply a 25.50% surcharge from May 5, 2025, until the first day of the following month. It also provides details about how the business calculates fuel surcharges. That information helps shippers determine how they will adjust their budgets to accommodate the extra costs or choose whether to rely on other carriers that may have different pricing structures that the affected decision-makers view as more economical based on their current needs.
Shipping representatives should get as much information as they can from several providers. Those details will help them feel confident they have made the best choices and are fully aware of the financial implications of the LTL fuel surcharges imposed.
Shippers should also have transparent discussions with carriers and suggest options that would enable them to lock in specific surcharge rates for an agreed-upon time or negotiate caps. Both strategies would allow them to reduce the financial uncertainties that arise when those charges are less constant.
Use LTL Fuel Surcharges to Advance Alternative Fuel Adoption
Although the supply chain still heavily depends on fossil fuels to get truckloads to their destinations, many companies are progressively investing in options such as vehicles that run on hydrogen or battery-electric systems. One analyst mentioned how fuel surcharges generated more than 10% of the revenue for two large fleets.
Although they help carriers deal with the price volatility associated with conventional methods of powering their vehicles, decision-makers should consider creating plans that result in them using certain percentages of those charges to pay for trucks that use greener energy sources.
That stipulation could make customers using the carriers more willing to pay the LTL fuel surcharges, too. Leaders of companies across industries are investigating feasible ways to reduce their direct and indirect emissions. One accessible way to minimize those in the second category is to work with carriers that have made clear and progressive commitments to operate more sustainably. Although fuel is only one parameter to measure, it is a central matter for most entities working within the modern supply chain.
Embracing alternative fuels will also become easier as they gain momentum through rising popularity and access. Statistics estimate the hydrogen fuel cell market worth will exceed $130 billion by 2030, indicating more people are interested in the possibilities. Although they may not initially like news that the carriers they use will soon increase fuel surcharges, those affected should be more receptive to learning that the fees they pay will help make supply chains greener and support a more sustainable future.
Stay Abreast of Market Trends
Whether someone operates as an LTL carrier or is a shipper needing such services, they should remain informed about developments that could ripple across the industry. In one case, a March 2025 change resulted in UPS changing its approach to calculating surcharges, which affects three of its services in the United States. The news came due to the company aiming to increase its per-package revenue.
More specifically, surcharge calculations rose by 50 basis points. Since competitor FedEx determines those fees similarly, parties familiar with the matter suggested that company may follow suit.
However, UPS also announced changes to other fees, including those incurred for requiring printed invoices or making payments with checks or wire transfers. Those differences should remind shippers that fuel surcharges are one of many extra costs they may encounter. Remaining aware of what happens at individual companies — and more broadly throughout the industry — can prevent unpleasant surprises.
Monitor LTL Fuel Surcharges During a Larger Effort
Although these suggestions can encourage parties to be more proactive regarding LTL fuel surcharges, those affected should be careful not to become caught up in that single aspect. Numerous ongoing or sudden fluctuations in the supply chain can ultimately affect other costs supply chain professionals can minimize by being observant and responsive.
