Despite the data-capture challenges, it’s important to understand the ratio of short- versus long-haul kilometres travelled; how carriers define, calculate and apply fuel levies; and why poorly calculated surcharges can increase your freight rates by up to 20 percent.
In essence, carriers apply fuel levies to adjust their freight charges, offset the cost of operating heavy equipment and hedge their pricing and revenue risk in their low-profit-margin industry, where ever-present fuel cost risk can make the difference between making and losing money.
But since each individual carrier applies fuel levies based on its unique formula—using its own base fuel price, a variety of fuel price benchmarks and fuel cost weighting—your fuel surcharge costs are inconsistent from one operator to the next
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