Fuel Surcharge


Lets talk about another example how moving and freight companies and brokers like charter, TMM known as third party moving management, Tier one that Take from your extras and fuel surcharges, One example, Most of these third party brokers will accept a shipment at say 30 percent discount or less and offer it to you at 60 percent discount, what this means is that they just skimmed off your extras and fuel surcharge by 30 percent, in some cases this can be as much as $5000.00 more or less depending on the size of the shipment.


(a) This clause implements section 884 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417).

(b) Unless an exception is authorized by the Contracting Officer, the Contractor shall pass through any motor carrier fuel-related surcharge adjustments to the person, corporation, or entity that directly bears the cost of fuel for shipment(s) transported under this contract.

(c) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts, including subcontracts for commercial products or commercial services, with motor carriers, brokers, or freight forwarders.

What this means to the contractors:  if you are the one that bares the cost of the fuel then the contractor is due 100 percent of the fuel surcharge

What a lot of carriers and brokers will do is to give the contractor the job at 60 percent discount when they accepted the job from the government at thirty percent discount this practice is illegal. The contractor is due the fuel surcharge at the actual discount the broker or carrier excepted it at.

Have you ever notice that when you ask for the GBL  (Government Bill of lading)  That line 20 is often blackened out by the carrier or broker, this because they accepted the job at a much lesser discount then it was offered to you and they do not want you too see how much is being skimming off the top, or when you ask for the Government Bill Of Lading carriers and brokers will often make up the excuse, Oh we don’t have it yet!

Cost of fuel is determined for the shipment on the 15th of each month by the dept of energy

Did you know according to EIA Many shipping and delivery companies and freight carriers include a fuel cost surcharge in their rates and invoices to cover the cost of diesel fuel.

The U.S. Energy Information Administration (EIA) collects and publishes retail diesel fuel price data. Many shippers and truckers use that retail price information in their fuel pricing formulas. EIA does not calculate, assess, or regulate diesel fuel surcharges. EIA cannot tell transportation companies and freight carriers how to calculate a fuel surcharge.

Every company has its own method for calculating fuel surcharges. Many major transportation companies have information about how they calculate surcharges on their websites. EIA does not endorse or recommend any method for calculating fuel surcharges.

Here is another point according to Department of Defense

TSP(s) will clearly show fuel price adjustments on all paper and electronic commercial freight bills, BOL, and invoices. The amount of any diesel fuel rate surcharge must be shown as a separate item on the TSP(s) invoice.

Other words when you get a blackened-out Government Bill of Lading (line-20) You can blatantly see something is being covered up, according to the Truth and Federal Leasing Laws you as a contractor are entitled an copy of the Billed Freight Bill, never trust a computer generated statement to validate your income is correct, Remember both must be one of the same.

Trucking companies for years have been skimming off the top of drivers in one way shape or form.