What is the Fuel Surcharge?
The fuel surcharge provides cost recovery to trucking companies from the financial impact of volatile fuel prices.

How is the Fuel Surcharge calculated?
The fuel surcharge will be triggered when the price per litre of diesel fuel increases over the established base cost.    The percentage increase is calculated based on whether the shipment is truckload or less-than-truckload and the number of cents per litre that the current price of fuel is over the base cost.  The calculated percentage is applied to the pre tax transportation cost.

How much has fuel increased since the base cost was established?
The price of diesel fuel doubled between August 1999 and March 2003.  In August 2006 the price of diesel fuel was 292% of the base cost.

Why do high oil prices affect my shipping cost?
Second only to labour, fuel represents a significant portion of a carrier’s operating cost.

Although the fuel surcharge provides cost recovery for diesel fuel consumed the transport industry uses many products derived from oil, including tires, motor oil and parts.

Where can I learn more about the current price of oil?

http://www.wtrg.com/prices.htm
http://www.fca-natc.org/

Source:   Ontario Ministry of Energy

Source:  Freight Carriers Association