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Negotiating Rates10 min read•February 2, 2026

Understanding fuel surcharges: who actually gets the money?

Learn how fuel surcharges work in trucking, how FSC is calculated, whether it's included in your rate, and how to ensure you're getting paid what you're owed.

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FF Dispatch finds loads, negotiates rates, and handles broker communication.

You book a load for $2.50/mile. Great rate, right?

Then fuel prices jump from $3.50 to $4.20 per gallon.

Suddenly that "great rate" barely covers your costs.

Meanwhile, brokers are collecting fuel surcharges from shippers - sometimes $300-500 per load - and keeping most of it.

Here's what they don't tell you: Fuel surcharges (FSC) were created to protect carriers from fuel price volatility. But many brokers treat FSC as profit instead of passing it through to you.

This guide explains exactly how fuel surcharges work, how to calculate them, and most importantly - how to make sure you actually get paid what you're owed.

What is a fuel surcharge (FSC)?

Simple definition: An additional fee added to freight rates to account for fuel price fluctuations.

The concept:

  • Base freight rate assumes fuel at a certain price (usually $1.20-1.50/gallon)
  • When fuel prices rise above that baseline, FSC compensates for the increase
  • When fuel prices drop, FSC decreases or disappears

Think of it like: Airlines charging extra fees when jet fuel prices spike. Same principle.

How FSC is calculated

The standard formula:

Most common calculation:

Current fuel price: $4.00/gallon
Baseline price: $1.25/gallon
Difference: $2.75/gallon

Assumed MPG: 6 MPG
FSC per mile: $2.75 ÷ 6 = $0.458/mile

For 1,000-mile load:
FSC = 1,000 miles × $0.458 = $458

In plain English: FSC covers the extra fuel cost above the baseline price.

Real-world example:

Load: Dallas to Chicago (950 miles)

Base rate (what shipper pays): $2,850 ($3.00/mile) FSC (based on $4.00 fuel): $435 ($0.458/mile) Total shipper pays: $3,285

What you should get: Full $3,285 (base + FSC)

What often happens: Broker offers you $2,850 and keeps the $435 FSC

Three types of FSC arrangements

FSC included in rate (most common):

How it works:

Broker says: "$2.85 per mile, FSC included"

What this means:

  • FSC is rolled into the base rate
  • You can't see it broken out
  • Whether fuel is $3/gallon or $5/gallon, you get same rate

Pro: Simple, no confusion Con: When fuel prices spike, you're not protected

FSC separate (best for you):

How it works:

Broker says: "$2.40 base + $0.45 FSC = $2.85 total"

What this means:

  • Base rate is separate from FSC
  • FSC adjusts based on fuel prices
  • If fuel jumps to $5/gallon next week, your FSC increases

Pro: You're protected from fuel volatility Con: More complex calculation

"We'll pay FSC if shipper pays us" (avoid):

How it works:

Broker says: "The rate is $2.85, but if the shipper pays FSC we'll pass it through"

What this means:

  • You have no guarantee of getting FSC
  • Broker controls whether you get it
  • Often you never see it

Pro: None Con: Broker keeps the FSC most of the time

Avoid these brokers.

Who actually gets the FSC?

Here's the freight chain:

Shipper → Broker → Carrier (You)

What should happen:

  1. Shipper pays broker $3,000 base + $400 FSC = $3,400
  2. Broker takes their cut: $300 (10%)
  3. You get: $3,100 (base + FSC, minus broker fee)

What often happens:

  1. Shipper pays broker $3,000 base + $400 FSC = $3,400
  2. Broker offers you: $2,800 ("FSC included")
  3. Broker keeps: $600 instead of $300

The FSC is YOUR money, not the broker's profit margin.

How to ensure you get FSC

Ask upfront:

Before accepting any load:

YOU: "Is FSC included in the rate or separate?"

BROKER: "It's included"
YOU: "What amount is allocated for FSC?"

BROKER: "Uh... it's just in the rate"
YOU: "I need to know. What's the base rate and what's the FSC?"

If they can't or won't tell you, they're keeping it.

Request breakdown:

Ask for rate confirmation showing:

Base rate: $2,400
FSC: $320
Total: $2,720

Not:

Total rate: $2,720 (FSC included)

Why this matters: With a breakdown, you can verify FSC matches current fuel prices.

Verify against shipper rate:

Some brokers will share the shipper rate sheet:

YOU: "Can I see what the shipper is paying?"

If they show you:

Shipper pays: $3,000 + $400 FSC
Broker offers you: $2,800 total

You just caught them pocketing $600 instead of $300.

FSC calculation tools

DOE fuel price index:

The U.S. Department of Energy publishes weekly diesel prices.

Most FSC calculations use: DOE National Average Diesel Price

Check current prices: https://www.eia.gov/petroleum/gasdiesel/

Example (January 2026):

Current DOE diesel average: $3.85/gallon

Calculating your FSC:

Use this formula:

1. Find current DOE diesel price: $3.85
2. Subtract baseline (usually $1.25): $3.85 - $1.25 = $2.60
3. Divide by assumed MPG (usually 6): $2.60 ÷ 6 = $0.433
4. FSC per mile: $0.433

For 1,200-mile load:

FSC = 1,200 × $0.433 = $520

If broker offers you $2.50/mile "FSC included" on this load:

Your rate: $2.50 × 1,200 = $3,000
Should be: $2.50 + $0.433 FSC = $2.933/mile × 1,200 = $3,520
You're losing: $520

Common Broker Tactics

Tactic #1: "FSC is Already in the Rate"

What they mean: We're not giving you extra.

Your response:

"I understand it's included, but I need to see the breakdown. What's the base vs FSC?"

If they won't tell you: They're keeping it.

Tactic #2: "Shippers Don't Pay FSC Anymore"

What they mean: We want to keep the FSC.

The reality: Most shippers still pay FSC, especially large corporations.

Your response:

"Can you show me the shipper rate confirmation that shows no FSC?"

They usually can't because the shipper IS paying FSC.

Tactic #3: "FSC is Based on Lower Fuel Price"

What they mean: We're using old fuel prices to reduce FSC.

Example:

BROKER: "Our FSC is based on $3.20 fuel"
YOU: "Current DOE price is $3.85. Why are you using an outdated price?"

Some brokers use old fuel prices to underpay FSC.

Tactic #4: "We Use Our Own FSC Formula"

What they mean: We made up a formula that pays you less.

The reality: Industry standard is DOE prices and 6 MPG.

Your response:

"I need FSC based on DOE diesel prices and 6 MPG, which is industry standard."

When FSC Works in Your Favor

FSC protects you when fuel prices spike.

Example: 2022 Fuel Crisis

Early 2022 diesel: $3.50/gallon
Summer 2022 diesel: $5.80/gallon

Without FSC:
$2.50/mile rate becomes unprofitable

With FSC:
$2.50 base + ($5.80 - $1.25) ÷ 6 = $0.758 FSC
Total: $3.258/mile

The FSC added $0.758/mile when you needed it most.

But only if you negotiated FSC separately from the base rate.

Carriers with "FSC included" rates made no extra money when fuel spiked.

Should You Negotiate FSC Separately?

Pros of Separate FSC: ✅ Protected when fuel spikes ✅ Can verify you're getting fair compensation ✅ Forces broker transparency

Cons of Separate FSC: ❌ More complex ❌ Rate fluctuates week to week ❌ Harder to compare loads

Pros of FSC Included: ✅ Simple, one number ✅ Consistent from week to week ✅ Easy to compare loads

Cons of FSC Included: ❌ No protection when fuel spikes ❌ Broker hides FSC markup ❌ Usually means you're getting less

Recommendation: Negotiate separately if you can. It's more work but usually pays better.

How FF Dispatch Handles FSC

Here's what we do differently:

We Verify Shipper FSC

Before presenting you a load, we: ✓ Confirm what shipper is paying ✓ Verify FSC amount is fair ✓ Ensure broker isn't pocketing excessive FSC

We know when brokers are hiding FSC.

We Negotiate FSC Pass-Through

We ensure:

  • You get full FSC from shipper
  • Broker takes their % only off base rate
  • FSC is not part of broker's margin

Example:

Shipper pays: $3,000 base + $400 FSC
Broker fee (10%): $300 (off base only)
You get: $2,700 base + $400 FSC = $3,100 total

Not:

Shipper pays: $3,400 total
Broker fee (10%): $340
You get: $3,060

We protect your FSC.

We Track Fuel Prices Weekly

We monitor:

  • DOE diesel prices
  • FSC rates by lane
  • Which brokers pay fair FSC
  • Which brokers consistently underpay

We use this data to negotiate better for you.

We Make it Simple

You don't need to:

  • Calculate FSC yourself
  • Argue with brokers about formulas
  • Track fuel prices
  • Verify broker math

We handle all of it, ensuring you get every dollar you're owed.

The Bottom Line

Fuel surcharges were created to protect carriers from fuel price volatility.

But many brokers treat FSC as hidden profit.

To protect yourself:

  1. Always ask if FSC is included or separate
  2. Request a breakdown of base vs FSC
  3. Verify FSC matches current fuel prices
  4. Calculate expected FSC yourself
  5. Avoid brokers who won't be transparent

FSC can add $300-600 per load to your revenue - but only if you get it.

Ready to Stop Losing Money on FSC?

Tracking fuel prices, calculating FSC, and fighting with brokers is exhausting.

What if someone else handled all of this?

What FF Dispatch Offers:

✅ FSC verification - We confirm you're getting fair FSC on every load ✅ Transparent rates - We break down base vs FSC so you know exactly what you're getting ✅ Broker accountability - We know which brokers play games with FSC ✅ Weekly fuel tracking - We monitor rates and adjust expectations ✅ Professional negotiation - We ensure FSC is passed through to you ✅ Simple pricing - 7% average fee, you see every dollar

Our clients get $400-800 more per month because we ensure they receive full FSC.

Calculate Your Potential Earnings with FF Dispatch →

See Our Transparent Rate Breakdowns →

Final Thoughts

Every time fuel prices spike, carriers should be protected by FSC.

But only if:

  • You negotiate FSC separately
  • Brokers pass it through to you
  • You verify the calculations

Don't let brokers pocket FSC that belongs to you.

Ask questions. Demand transparency. Calculate the numbers yourself.

Your fuel costs are real. Your FSC compensation should be too.

Related Posts:

Action Steps:

  1. Check current DOE diesel price: https://www.eia.gov/petroleum/gasdiesel/
  2. Calculate expected FSC for your typical loads
  3. Ask brokers for base + FSC breakdown on next 5 loads
  4. Compare what they offer vs what you calculated
  5. Block brokers who won't provide FSC transparency

Remember: FSC is not "extra" money. It's compensation for your increased fuel costs. You earned it. Make sure you get it.

Sources:

  • U.S. Energy Information Administration (EIA) - Diesel Prices - Official DOE fuel price data
  • Industry standard FSC calculation methods and baseline pricing
  • Owner operator FSC experiences from TruckersReport.com forums
  • Broker contract FSC clause analysis
  • Shipper-broker-carrier FSC flow documentation (2025-2026)

Ready to Earn More Per Mile?

Stop spending hours on load boards. Our dispatchers use the strategies in this guide (and many more) to get you 15-20% better rates consistently.

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