Fuel surcharges continue to sharp increase for all modes of freight transportation, and it’s creating difficulties for product distribution. Those who rely on their Global Supply Chain are especially feeling the pressure as they try to manage the significant increase in transportation costs. Recent research shows that the price of diesel fuel rose more than $1 per gallon in the United States Q2, and the cost is expected to continue to climb throughout the calendar year.

All freight transportation companies, such as UPS and FedEx, are shielded from the higher fuel rates by adjusting their fuel surcharges each week, in accordance with the cost of diesel and jet fuel. LTL and Full Truckload companies are also adjusting their fuel rates by as much as 40%. Meanwhile, those who rely on these carriers are searching for ways to find relief so they can continue to manage an efficient supply chain. Three of the most common ways shippers are finding relief from the rising fuel surcharges bypassing some of the costs onto customers, evaluating their operations to reduce spending, and creating additional distribution centers.

Pass Some of the Costs Onto Customers

One way to cope with soaring fuel surcharges is to pass some incremental costs onto their customers. Adding your own incremental fuel or handling surcharge to the invoice for customers to pay is reasonable. Numerous delivery and service companies are already adding fuel surcharges, and these can be seen in the cost breakdown of an order.

Everyone is aware of the rising costs of fuel, and everyone is affected in some way. Whether people are filling up their gas tanks or purchasing goods, they are contending with the burden of these price hikes. Most people want their favorite businesses to continue to operate and will understand when shippers must transfer some of the costs of fuel onto consumers.

Evaluate Operations and Identify Where to Reduce Spending

Another way shippers can find relief from the rising fuel surcharges is to evaluate their operations and determine where spending can be reduced. Shippers need to see if there are cheaper methods for transporting their goods, and they must negotiate contracts that can offer better deals where possible. Traffic Data Exchange, a company that specializes in helping shippers experience success based on analyzing the latest data trends, recommends routinely auditing invoices for inaccuracies. A significant amount of money is lost due to invoicing errors. Business experts strongly advise collaborating with a trusted partner who has data-driven capabilities and expertise to audit carrier invoices, so nothing is left to chance.

Adding Additional Distribution Centers to Minimize the Distance Products Will Travel

Finally, shippers are adding more distribution centers to minimize the distance goods will travel to consumers. The initial costs for adding distribution centers are high; however, it all pays off eventually since shippers will save money transporting goods overall.  We have a client who is using this opportunity to look at a new west coach distribution facility.  With the proper data and analysis, you will be able to determine your ROI timeline supporting a move such as this.


Shippers who are looking for relief from the rising fuel surcharges and desire to have a strong return on investment can contact Traffic Data Exchange. We collaborate with our partners to aid them in success as we use data analysis and expertise to help businesses rise to the next level.

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