Understanding Fuel Surcharges — What They Are and Why We Use Them
At Bacton Logistics, transparency is an important part of how we work with our customers. One area that often raises questions in the transport industry is the Fuel Surcharge (often referred to as FSC), so we wanted to take the opportunity to explain what it is, why it exists, and how we manage it.
A Fuel Surcharge is a variable charge that reflects changes in the cost of diesel and other fuels used to power our fleet. Because fuel prices can fluctuate significantly due to global oil markets, supply conditions, government policy and wider economic factors, the FSC allows transport providers to fairly and accurately reflect these changing costs rather than absorbing or passing on sudden price spikes through permanent rate increases.
Rather than building a fixed fuel cost into our standard rates – which could result in customers paying more than necessary when prices are lower – the Fuel Surcharge ensures that fuel costs are applied in a transparent and responsive way. This approach helps keep our core pricing stable while still covering the unavoidable impact of fuel price movements on our operations.
To make sure our FSC remains fair and reflective of real market conditions, we actively monitor fuel prices on a weekly basis. We review recognised industry fuel price data and use this to adjust our Fuel Surcharge percentage accordingly. If fuel prices rise, the FSC may increase; if they fall, the FSC can reduce as well.
This weekly review process means our customers benefit from a more accurate, up-to-date and balanced approach, rather than a static charge that doesn’t reflect actual costs. It also allows us to plan responsibly while continuing to deliver a reliable, high-quality logistics service.
We understand that fuel costs are a shared concern across the supply chain, which is why we remain committed to being open about how we calculate and apply our Fuel Surcharge. If you ever have any questions about how this works in relation to your deliveries, our team is always happy to discuss it with you.
Ultimately, the FSC helps us maintain consistent service levels, invest in our fleet, and continue operating safely and efficiently – even in an unpredictable fuel market.
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