Fuel Surcharge Guide for Freight Brokers and Shippers

Industry Insights

5 min read

Diesel remains above $6. Learn how fuel surcharge structures work, where pricing mismatches happen, and what brokers and shippers should review.

Fuel Surcharge Guide for Freight Brokers and Shippers

Diesel remains one of the biggest variables affecting freight costs in 2026.

The U.S. Energy Information Administration's weekly on-highway diesel average reached a record nominal $6.529 per gallon during the week of September 21.

Prices have eased since then, but not by much. For the week of October 12, the national average was still $6.179 per gallon, more than $2.50 higher than a year earlier.

For freight brokers, high diesel creates a particular challenge.

A broker may have one pricing structure with the shipper and a completely different commercial arrangement with the carrier moving the load. One side may use an indexed fuel surcharge. The other may quote an all-in rate based on current market conditions.

Those arrangements do not automatically move together.

That is why understanding the mechanics behind fuel pricing matters, especially when diesel is moving quickly.

Where Diesel Stands Now

The September record has eased, but diesel remains historically expensive.

Recent EIA weekly U.S. on-highway diesel averages:

• September 21: $6.529 per gallon

• September 28: $6.382

• October 5: $6.199

• October 12: $6.179

Regional differences are also significant.

For the week of October 12:

• California: $8.091 per gallon

• West Coast: $7.240

• Midwest: $6.259

• Gulf Coast: $5.809

• Lower Atlantic: $5.645

That is nearly a $2.45-per-gallon difference between California and the Lower Atlantic region.

For freight moving across multiple regions, the index used in a fuel program can therefore have a meaningful effect on the final transportation cost.

Canada has experienced similar pressure. Arrive Logistics reported Canadian diesel above CAD $2.75 per litre during September.

What EIA Expects Next

EIA's October Short-Term Energy Outlook expects U.S. retail diesel to remain elevated in the near term before gradually declining.

Its current forecast puts average retail diesel at approximately:

• $5.19 per gallon for 2026

• $4.49 per gallon for 2027

EIA also expects Brent crude oil to average approximately $84 per barrel in 2027.

But forecasts have moved significantly throughout the year.

Use forecasts for planning scenarios, not as a promise of where fuel will be six months from now.

How a Freight Fuel Surcharge Works

A fuel surcharge is generally designed to allow part of the transportation price to move with a published fuel benchmark.

EIA publishes fuel-price data. It does not set, calculate, approve, or regulate private fuel surcharge agreements.

The actual structure is determined commercially between the parties.

Many U.S. truckload and LTL programs reference EIA diesel prices. Canadian and cross-border programs may use different indexes or carrier-specific schedules.

Five variables usually determine how the calculation works.

1. The Fuel Index

The agreement should identify which benchmark applies.

• The EIA national average

• An EIA regional average

• California's EIA price

• Another agreed benchmark

• A carrier-specific fuel table

With regional diesel prices currently differing by more than $2 per gallon, the choice can materially affect the result.

2. The Base Price or Peg

The base price is the diesel level at which the surcharge begins.

Some programs still use legacy base prices established years ago.

There is no universally correct base.

What matters is how the base fuel price works together with the underlying transportation rate.

Changing the fuel base without considering the linehaul pricing can change the economics of the agreement.

3. Assumed Fuel Economy

Per-mile fuel surcharge formulas usually include an assumed MPG figure.

A common formula looks like this:

Fuel surcharge per mile = (fuel index - base price) ÷ assumed MPG

For illustration, using the October 12 national diesel price of $6.179, a

($6.179 -

Using 6.5 MPG instead would produce approximately $0.76 per mile.

Neither calculation represents the actual fuel consumed by every truck. The MPG figure is a pricing assumption agreed between the parties.

4. Update Frequency and Timing

Some fuel programs update weekly.

Others update monthly or use a lag between the published fuel price and the effective surcharge.

When diesel moves quickly, those differences become more visible.

A customer agreement might update monthly while carrier pricing responds immediately to current market conditions.

For a broker, that creates timing exposure between the customer side and carrier side of the transaction.

5. Rounding, Floors and Caps

Some programs round fuel calculations to the nearest cent.

Others use price bands or published tables.

Some contracts include minimum or maximum surcharge levels.

These details can look minor when diesel is stable. At today's prices and across a large freight network, they can become meaningful.

Where Brokers Can See Pricing Mismatches

For a freight broker, fuel is not simply a question of calculating a surcharge.

The customer agreement and carrier transaction need to be considered separately.

Customer and Carrier Pricing Update at Different Times

Imagine a customer fuel schedule resets monthly.

Carriers, meanwhile, are quoting loads based on today's market and today's operating costs.

If diesel rises quickly during the month, the carrier buy rate may respond before the customer pricing does.

That does not automatically mean either price is wrong.

It means the broker needs to understand the timing difference when quoting and managing the account.

Quote Validity During Volatile Markets

A quote created when diesel is $5.80 may still be sitting with a customer when diesel is above $6.00.

The longer the quote remains open, the greater the chance that market conditions have changed.

For volatile or difficult lanes, clearly defining quote validity can reduce confusion for both sides.

All-In Versus Separate Fuel Pricing

All-in rates are common in freight brokerage, particularly in the spot market.

There is nothing inherently wrong with them.

The important difference is visibility.

With an all-in rate, fuel, capacity, equipment availability, seasonality, and other market factors are reflected within one price.

With a separate surcharge, fuel is easier to identify and adjust independently.

Neither approach is automatically better.

For brokers, the important thing is knowing which model applies on each side of the transaction and pricing accordingly.

Regional Exposure

A national fuel index may work well for a broad freight network.

For freight concentrated in specific regions, however, the national average may look very different from local diesel conditions.

California's October 12 diesel average was $8.091, compared with $5.645 in the Lower Atlantic.

That does not mean every regional lane needs a regional surcharge.

It does mean the index should be understood when evaluating the total economics of the freight.

What Shippers Should Review

High diesel is also a good reason for shippers to review existing transportation agreements.

The goal is not necessarily to renegotiate every fuel program.

It is to understand what is already there.

Know the Index

The agreement should clearly identify the fuel benchmark being used.

A reference to a generic "fuel surcharge" without identifying the underlying methodology makes it harder to audit invoices and compare proposals.

Understand the Base and MPG Assumptions

Two providers can use the same EIA index and still produce different fuel charges because their base prices or MPG assumptions differ.

Compare the entire pricing structure rather than the surcharge percentage or per-mile number in isolation.

Check the Effective Date

Which fuel price applies to a shipment?

• Tender date

• Pickup date

• A specific weekly publication

• A monthly adjustment date

When diesel changes rapidly, the difference matters.

Compare Total Transportation Cost

A low linehaul rate with one fuel structure is not automatically cheaper than a higher linehaul rate with another.

The useful comparison is the total expected transportation cost under the terms being offered.

That applies to all-in pricing as well.

Why High Diesel Matters Beyond the Fuel Line

Fuel also affects available capacity.

C.H. Robinson reported in its October freight update that carriers continue to cite record diesel prices as a major concern, particularly because traditional fuel surcharge structures may not fully compensate for costs associated with deadhead, idle time, extended routing, weather disruptions, or temperature-controlled operations.

That pressure can influence which freight carriers are willing to accept.

A carrier may technically have a truck available but decide that a lane, appointment structure, deadhead requirement, or total rate does not produce acceptable economics.

For brokers, that makes carrier relationships and lane-level knowledge increasingly valuable.

The number of trucks in the market is not always the same as the amount of capacity willing to move a particular load.

A Practical Fuel Review for Brokers and Shippers

When reviewing a fuel program, start with five questions:

1. Which fuel index is being used?

2. What base price and MPG assumption apply?

3. How often does the fuel amount update?

4. Which date or EIA release determines the applicable price?

5. Is fuel separate from linehaul or included in an all-in rate?

For brokers, run the exercise independently on the customer and carrier sides.

The two agreements do not need to be identical.

But the difference between them should be understood rather than discovered after the load moves.

Frequently Asked Questions

What fuel index is commonly used in U.S. freight?

Many U.S. truckload fuel programs reference the EIA weekly U.S. On-Highway Diesel Fuel Price or one of EIA's regional series.

LTL carriers often use their own published fuel surcharge tables.

Canadian and cross-border programs may reference different benchmarks.

How is a per-mile fuel surcharge calculated?

One common structure subtracts an agreed base fuel price from the applicable diesel index and divides the difference by an assumed MPG.

For example, using the October 12 EIA national price of $6.179, a

($6.179 -

Actual agreements vary.

Should freight be priced all-in when diesel is high?

There is no universal answer.

All-in pricing is common and can simplify quoting, particularly in the spot market.

Separate fuel pricing provides greater visibility into fuel movements.

The appropriate structure depends on the commercial agreement, freight characteristics, customer relationship, and how frequently pricing changes.

Will diesel prices fall in 2027?

EIA's October forecast currently projects U.S. retail diesel to average approximately $4.49 per gallon in 2027, down from its forecast average of $5.19 for 2026.

That is a forecast, not a guarantee.

Energy-market forecasts have already changed substantially during 2026.

The Bottom Line

Fuel surcharges become more important when diesel becomes volatile, but the headline diesel price is only part of the equation.

The structure matters.

For shippers, that means understanding the index, base price, MPG assumption, adjustment timing, and total transportation cost.

For carriers, it means understanding whether the economics of a load reflect current operating costs.

For freight brokers, it means understanding both sides of the transaction.

The customer's fuel structure and the carrier's pricing do not have to be identical. What matters is that they are clear, understood, and accounted for when the freight is priced.

With U.S. diesel still above $6 per gallon in mid-October, those details are worth reviewing.

Sources

• U.S. Energy Information Administration, Weekly Retail On-Highway Diesel Prices, latest release October 14, 2026

• U.S. Energy Information Administration, Short-Term Energy Outlook, October 2026

• C.H. Robinson, North America Truckload Freight Market Update, October 2026

• Arrive Logistics, September 2026 Freight Market Update

This article provides general information for freight professionals and reflects information available as of October 15, 2026. Fuel prices, market conditions, and commercial terms change frequently. Fuel surcharge arrangements are privately negotiated. This article is not legal, financial, tax, or contractual advice.