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Fuel Surcharge Contracts

Fuel Surcharge Contracts let you automatically calculate fuel surcharges on loads based on current EIA fuel prices. You can set up fixed surcharges, distance-based matrices, or percentage-based matrices and link them to your lane rate contracts.

Written by Michelle Schotter

Overview

When you dispatch a load, the cost of fuel fluctuates. Fuel Surcharge Contracts allow you to define rules for how fuel surcharges are calculated and applied to loads, so you don't have to manually adjust rates every time fuel prices change.

Fuel surcharge contracts are set up per customer and can be linked to lane rate contracts. When a load matches a lane with a fuel surcharge contract, the surcharge is automatically calculated based on the current week's fuel prices.

Navigation: Companies > Select a Customer > Lane Rates tab > Fuel Surcharge Contracts


Fuel Surcharge Types

Alvys supports three types of fuel surcharge calculations:

Type

How It Works

Best For

Fixed

A flat dollar amount per load OR a rate per mile. Does not change with fuel prices.

Simple contracts where the surcharge is a set amount regardless of fuel cost.

Distance

A matrix of fuel price ranges mapped to dollar-per-mile rates. The system looks up the current fuel price, finds the matching tier, and multiplies the rate by the load's billing miles.

Contracts where the surcharge varies by fuel price and is calculated per mile.

Percentage

A matrix of fuel price ranges mapped to percentage rates. The system looks up the current fuel price, finds the matching tier, and applies the percentage to the load's linehaul rate.

Contracts where the surcharge is a percentage of the linehaul, varying by fuel price.


Creating a Fuel Surcharge Contract

Step 1: Navigate to Fuel Surcharge Contracts

  1. Go to Companies > Customers in the left sidebar

  2. Select the Customer you want to set up the contract for to open Customer Profile

  3. Click Contracted Lanes & Fuel Surcharges button in top right corner of the page.

  4. Click the Fuel Surcharge Contracts tab

  5. Click Add New Contract

Step 2: Configure Contract Details

Fill in the following fields on the Details tab:

Field

Description

Contract Name

A descriptive name for this contract (e.g., "Customer ABC - FSC 2026").

Type

Select Fixed, Distance, or Percentage (see above).

Sub-Type (Fixed only)

Choose Flat (one amount per load) or Rate Per Mile (amount multiplied by miles).

Amount (Fixed only)

Enter the dollar amount for the surcharge.

Load Date

Which date on the load determines the fuel price lookup: Scheduled Pickup, Actual Pickup, Scheduled Delivery, or Actual Delivery.

Date Offset

Which week's EIA fuel prices to use: Current Week, Previous Week, Begin of Month, or Custom Range.

Custom Day Offset

If using Custom Range, enter a day adjustment from -9 to +9 days relative to the load date.

Region

The geographic region for the EIA fuel price lookup (e.g., "U.S.").

Rounding

How to round the calculated rate: Whole Penny, Tenth of a Penny, Hundredth of a Penny — Rounded or Truncated.

Step 3: Set Up the Matrix (Distance and Percentage Only)

If you selected Distance or Percentage as the type, click the Matrix tab to define your fuel price tiers.

Each row in the matrix represents a fuel price range and the corresponding surcharge rate:

Column

Description

Example

Start Price

The lower bound of the fuel price range (per gallon).

$3.00

End Price

The upper bound of the fuel price range (per gallon).

$3.49

Rate

For Distance: the dollar rate per mile. For Percentage: the decimal rate (e.g., 0.05 = 5%).

$0.08/mi or 0.05

Tips for the matrix:

  • Click Add Row to add tiers one at a time

  • Click Import CSV to bulk-import tiers from a spreadsheet (click Download Template first to get the correct format)

  • Tiers must not overlap — each fuel price should fall into exactly one range

  • Values support up to 4 decimal places for precision

  • For Percentage type, enter rates as decimals (0.05 = 5%), not as whole percentages

Step 4: Enable and Save

  1. Click Save


Linking a Fuel Surcharge Contract to a Lane Rate

Once you've created a fuel surcharge contract, you need to link it to one or more lane rate contracts for it to take effect on loads.

  1. Go to Companies > Customers in the left sidebar

  2. Select the Customer you want to set up the contract for to open Customer Profile

  3. Click Contracted Lanes & Fuel Surcharges button in top right corner of the page.

  4. Open or Create Contract

  5. In the contract details, select the Fuel Surcharge Contract from the dropdown

  6. Save the lane rate contract

When a load matches this lane, the fuel surcharge will be automatically calculated and applied.


How the Calculation Works

When a load is created or updated with a lane rate contract that has a fuel surcharge:

  1. The system determines the load date (based on the contract's Load Date setting)

  2. It applies the date offset to determine which week's fuel prices to use

  3. It looks up the EIA weekly fuel price for the configured region

  4. Based on the contract type:

    • Fixed (Flat): Surcharge = the configured amount

    • Fixed (Per Mile): Surcharge = amount x billing miles

    • Distance: Finds the matrix tier matching the fuel price, then: Surcharge = tier rate x billing miles

    • Percentage: Finds the matrix tier matching the fuel price, then: Surcharge = tier rate x linehaul rate

  5. The result is rounded per the contract's rounding setting

  6. The surcharge appears as a separate line item on the load


⚠️ Note: If the load's dates are in the future and fuel prices aren't available yet, the system will flag the surcharge for recalculation once actual dates and prices are available.


Example: Setting Up a Distance-Based Fuel Surcharge

Let's say your customer contract states: "Fuel surcharge is $0.02 per mile for every $0.05 increase in fuel price above $3.00/gallon."

Here's how you'd set it up:

  1. Create a new Fuel Surcharge Contract

  2. Set Type to Distance

  3. Set Load Date to Scheduled Pickup

  4. Set Date Offset to Previous Week (most common)

  5. Set Region to U.S.

  6. On the Matrix tab, add rows:

Start Price

End Price

Rate ($/mile)

$3.00

$3.049

$0.02

$3.05

$3.099

$0.04

$3.10

$3.149

$0.06

$3.15

$3.199

$0.08

If the EIA fuel price for the load's week is $3.12/gallon and the load is 500 miles, the surcharge would be: $0.06 x 500 = $30.00


Example: Setting Up a Percentage-Based Fuel Surcharge

If your customer contract states: "Fuel surcharge is a percentage of the linehaul rate based on current fuel prices."

  1. Create a new Fuel Surcharge Contract

  2. Set Type to Percentage

  3. Configure Load Date, Date Offset, Region, and Rounding as needed

  4. On the Matrix tab, add rows:

Start Price

End Price

Rate (decimal)

$3.00

$3.49

0.05

$3.50

$3.99

0.08

$4.00

$4.49

0.11


💡 Percentage rates are entered as decimals: 0.05 = 5%, 0.08 = 8%, 0.1234 = 12.34%. Do not enter "5" for 5%. If the fuel price is $3.75 and the linehaul is $2,000, the surcharge would be: 0.08 x $2,000 = $160.00


Frequently Asked Questions

  • Where does Alvys get the fuel prices?

    Alvys uses the U.S. Energy Information Administration (EIA) weekly retail diesel fuel prices, published every Monday. The prices are region-specific and updated automatically.

  • Can I have multiple fuel surcharge contracts for the same customer?

    Yes. You can create multiple contracts and assign different ones to different lane rate contracts for the same customer.

  • What happens if the fuel price falls outside my matrix tiers?

    If the current fuel price doesn't match any tier in the matrix, no surcharge will be applied. Make sure your tiers cover the expected range of fuel prices.

  • Can I import my matrix from a spreadsheet?

    Yes. On the Matrix tab, click Download Template to get a CSV template, fill in your tiers, then click Import CSV to upload it.

  • How precise can the matrix values be?

    All matrix values support up to 4 decimal places. This applies to Start Price, End Price, and Amount.

  • What is the Date Offset for?

    Fuel prices are published weekly. The Date Offset lets you control which week's prices to use relative to the load date. Most customers use Previous Week since the current week's prices may not be published yet at the time of dispatch.

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