S&P Reports Fuel Surcharges Boost Shipper Costs 7% to 14%

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he Standard & Poor’s credit-rating agency said that fuel surcharges by trucking companies that it reviews have added an average of 14% to freight bills for truckload shipments and 7% for less-than-truckload hauls.

The agency also said in a July 7 report that with fuel costs eating up 10% to 15% of TL carrier revenues and 3% to 8% for LTLs, carrier profitability “can be materially affected by fuel pricing and measures that seek to offset it.”

S&P said it favored fuel surcharges that allow trucking companies to adjust the fee scale weekly to cover market price fluctuations, as well as regional pricing that allows trucking firms to assess a higher surcharge in areas such as the West Coast where fuel costs exceed the national average.

Shippers that pay the surcharges say they have also had to pass along those increased costs by charging more for their goods.

For the full story, see the July 12 print edition of Transport Topics. Subscribe today.