To help offset the fluctuating and rising cost of diesel needed for transportation, fuel surcharges are being implemented throughout the transportation sector, including the concrete industry.
Fuel surcharges enable businesses within the transportation industry to protect themselves from fuel price volatility and to remain profitable. They are based on fuel prices that will likely fluctuate, and thus, the rates may change from month to month. Sometimes weekly.
Many Canadian shippers use the Freight Carriers Association percentages to index their own surcharge, which matches an increase/decrease in the price to the surcharge to each increase/decrease in fuel prices over the baseline price. They use three variables for the fuel surcharge calculation: the baseline fuel price, the current price for fuel, and fuel costs as a share of operating costs. (Canadian Fuel Surcharge Calculator, Home Page | Canadian Fuel Surcharge Calculator)
In Atlantic Canada, there are many organizations offering fuel surcharge calculations. You can find recommended transportation industry surcharges through:
- Free! Nova Scotia Government website,
- Membership Required! Freight Carriers Association of Canada
- Free! Trucking Associations Nova Scotia
- Membershipship Required! Atlantic Provincial Trucking Association
Please note: you need to become a member to some of these organizations to gain the most current fuel surcharge recommendation.