Fuel Surcharge

A fuel surcharge is a variable fee that carriers add to each shipment to recover fluctuating diesel and jet-fuel costs. Major parcel carriers adjust the surcharge weekly or monthly, tying it to published fuel-price indices. Because it moves independently of the base rate, shippers cannot accurately predict their total shipping cost week to week. LMS Core eliminates the fuel surcharge entirely through its FinalFare model; LMS Reach rates are partner-sourced and may carry a carrier fuel surcharge.