The Fuel Surcharge is a regulated amount on the price of (diesel) fuel to ensure that Freight shipping companies are able to recuperate fuel costs on which they have no control.
When speaking specifically about Ground Transport, variable prices in fuel costs can impact the cost of shipping. The shipping company establishes a “surcharge”, which is a fuel price agreement added to the shipping costs.
As fuel prices tend to fluctuate, they can impact in-route shipments. As there is no appropriate method to assess the potential impact of a rapid rise of fuel costs and how it can adversely impact the shipping company, the shipping company establishes a fuel surcharge and which is then applied to their rate.