Each company can choose a fuel surcharge methodology that best fits its operations. However, RateView follows a widely accepted industry standard.
Fuel surcharge (FSC) values are updated weekly based on the U.S. Department of Energy (DOE) national average diesel price. RateView rates and forecasts are based on contributed linehaul rates, with fuel calculated separately.
- Establish a baseline fuel price. Industry baselines typically range from $1.10 to $1.30 per gallon, reflecting historical diesel prices before major volatility. RateView uses $1.25, which aligns with the most commonly used benchmark in recent industry surveys. This value is reviewed and updated weekly.
- Calculate the price difference. Subtract the baseline price from the weekly DOE/EIA national diesel price (available at eia.gov). For example, if the reported price is $3.003, it is rounded to $3.00. Subtracting the $1.25 baseline results in a difference of $1.75 per gallon.
- Convert to a cost per mile. Divide the price difference by miles per gallon (MPG) to calculate the fuel surcharge per mile. RateView accounts for equipment type and empty (deadhead) miles when determining MPG.
Formula: (Current EIA price − $1.25 baseline) ÷ MPG
| Current Price | Baseline Price | MPG | Fuel Surcharge | |
| Van | $3.00 | $1.25 | 6.0 mpg | $0.29 |
| Reefer | $3.00 | $1.25 | 5.5 mpg | $0.32 |
| Flatbed | $3.00 | $1.25 | 5.0 mpg | $0.35 |
This approach, resetting fuel surcharges weekly using the EIA national average, has been standard practice for over 30 years. While engine efficiency has improved over time, MPG assumptions should still be reviewed periodically.
It’s also important to account for all miles driven. Fuel costs apply to both loaded and empty (deadhead) miles. For example, if a truck averages 6.65 MPG but 10% of miles are empty, the effective MPG for pricing purposes is closer to 6.0.
When RateView receives rate data, we validate or calculate fuel and linehaul components as part of our data quality process:
- If both linehaul and fuel surcharge are provided, we verify the totals.
- If only total rates are submitted, we estimate and remove the fuel portion using the FSC in effect on the shipment date.
Linehaul rates in historical data are not affected by current fuel prices.
In contract pricing, fuel surcharges are typically applied on top of base (linehaul) rates. In the spot market, rates are usually all-in. However, separating fuel from linehaul provides better visibility into market-driven pricing. RateView applies a consistent methodology to both contract and spot data.
For 365-day averages, RateView calculates the average linehaul rate and then adds the current week’s FSC to reflect up-to-date fuel costs.
Example: If the historical average linehaul rate is $1.58 per mile and the current FSC is $0.60, the displayed total rate will be $2.18 per mile. This ensures current fuel costs are reflected without altering historical linehaul trends.