Fuel volatility is back
Fuel is one of those costs that sits quietly in the background—until it doesn’t. In March 2026, the U.S. national average on‑highway diesel price moved from about $3.90 per gallon (week of March 2) to about $5.38 (week of March 23)—a swing that can ripple through transportation budgets in a matter of weeks. [1]
As Tyler Franks[2], Director of Pricing and Strategy, explains: fuel surcharges exist to account for fuel-driven cost fluctuations that impact what carriers need to be paid—and, ultimately, what customers are charged. In other words, when diesel rises quickly, a structured fuel approach keeps pricing changes visible and explainable, rather than forcing constant base-rate renegotiations. This is consistent with how fuel surcharges are commonly used across shipping and delivery: as an added charge to help cover diesel costs. [3]
All-in rate vs linehaul plus fuel surcharge
Tyler described the difference in plain terms. An all‑in rate is the total charge you see for moving freight. When a fuel surcharge program is used, that same total is typically “unbundled” into a base transportation charge (often called linehaul) plus a fuel surcharge (and any accessorials), which together add up to the all‑in number.
Why split it out? Fuel is a variable input that can move week to week. Separating it makes it easier to adjust for fuel changes without constantly reworking the underlying linehaul rate, while still letting the invoice reflect what’s happening in the market. [3]
Where the fuel number comes from
Fuel surcharges aren’t meant to be arbitrary. Many programs reference published benchmarks—most commonly the weekly on‑highway diesel price data from the U.S. Energy Information Administration[4].
EIA’s weekly process is built for consistency: it collects retail on‑highway diesel prices every Monday from a sample of outlets across the contiguous U.S., capturing prices as of 8:00 a.m. [5] It then publishes weekly national and regional averages, including the five Petroleum Administration for Defense Districts (PADDs) you’ll often see referenced in fuel discussions (East Coast, Midwest, Gulf Coast, Rocky Mountain, West Coast). [6]
EIA is also clear about its role: it publishes the diesel price data, but it does not calculate, regulate, endorse, or recommend a specific fuel surcharge method. Fuel surcharge terms are negotiated privately between shippers and transportation providers. [7]
The trade-off shippers feel
Tyler highlighted the upside: a fuel surcharge helps keep carriers “whole” when diesel climbs, and it reduces pressure to constantly re-price linehaul. That matters because fuel costs hit a carrier’s cash flow fast—fuel is typically paid soon after purchase, while transportation invoices can be paid on 30‑day (or longer) terms. [8]
There’s also a practical market reality: when fuel is embedded inside a fixed per‑load rate, smaller carriers can have limited leverage to recoup a sudden surge. In contrast, larger transportation providers more commonly use surcharges to recover higher fuel costs. [8]
The downside is on the planning side. If a surcharge changes weekly, forecasting can get harder—especially when fuel moves sharply, quickly. EIA’s data shows how fast those “rare” moves can happen: the national weekly diesel average jumped by roughly $1.48 per gallon between March 2 and March 23, 2026. [1]
Why geopolitics can show up in your freight invoice
Diesel prices are tied to a global oil market, so disruptions far from your facility can still show up at the pump—and in transportation pricing. A prime example is the Strait of Hormuz[9], one of the world’s most important oil chokepoints.
EIA reports that oil flow through the strait averaged about 20 million barrels per day in 2024, roughly 20% of global petroleum liquids consumption, and notes that even temporary chokepoint disruptions can raise shipping costs and potentially increase world energy prices. [10]
How RJ Logistics prices in volatile periods
Tyler’s guidance is practical: match the rate structure to what your business needs most right now.
If your priority is transparency and fairness during fuel swings, a fuel surcharge program is often the cleanest structure. It keeps fuel-driven changes visible and benchmarked to published data that updates weekly. [11]
If your priority is short‑term price certainty, all‑in rates can still work for budgeting—but in a fast-moving fuel environment, the trade-off is usually a shorter effective period and a defined review window. Tyler’s rule of thumb is a 30‑day effective period with the rate subject to review. That doesn’t automatically mean a change; it creates a clear checkpoint to revisit pricing if fuel moves materially.
Bottom line
Before comparing rate quotes, confirm the structure: are you seeing a true all‑in rate, or a linehaul rate plus a fuel surcharge program tied to a published index that may update weekly? [11]
Either model can be the right choice depending on your goals—cost visibility, budget stability, or a blend of both. Our job is to match the structure to your shipping reality, and communicate early when the market shifts.
References:
[1] [6] U.S. Gasoline and Diesel Retail Prices
https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm
[2] [7] [11] Frequently Asked Questions (FAQs) – U.S. Energy Information Administration (EIA)
https://www.eia.gov/tools/faqs/faq.php?id=2&t=9
[3] Diesel fuel surcharges – U.S. Energy Information Administration (EIA)
https://www.eia.gov/energyexplained/diesel-fuel/diesel-fuel-surcharges.php
[4] [8] [9] Spiking US diesel prices keep trucking industry stuck in years-long slump | Reuters
[5] Methodology for EIA Weekly On-Highway Diesel Fuel Price Estimates – U.S. Energy Information Administration (EIA)
https://www.eia.gov/petroleum/gasdiesel/diesel_proc-methods.php
[10] Amid regional conflict, the Strait of Hormuz remains critical oil chokepoint – U.S. Energy Information Administration (EIA)
