Opinion | When Surcharges Become Profit Centres, Logistics Has a Problem

Fuel surcharges exist for a legitimate reason: to protect carriers and brokers from volatile diesel prices by adjusting rates to reflect real-time costs rather than locking in fixed prices. But there's growing evidence in 2026 that major logistics players are using fuel surcharges as something else entirely,a hidden profit lever that inflates costs far beyond what actual fuel expenses justify. The Breakbulk opinion piece flags a real industry problem: when surcharges stop being a neutral cost-pass-through and start being engineered profit centers, shippers and carriers alike get squeezed.

For owner-operators and small fleets working with brokers, this matters directly. Fuel surcharge manipulation is one of the most common ways brokers extract hidden profit, and the shipper almost always pays a higher surcharge to the broker than the broker pays you, with spreads ranging from reasonable (10-20% retained) to exploitative (50-80% retained). The problem is compounded by the complexity of surcharge formulas. Brokers create unfair FSC tables using high base prices, high MPG assumptions, or wider diesel price ranges, and if a table shows 30 cents per mile surcharge when diesel is over 4.00, the math is wrong. Since most owner-operators focus on the all-in rate rather than deconstructing how surcharges are calculated, these inflated charges go unnoticed.

The risk intensifies when you're bidding loads in a market where fuel is already a major line item. In 2026, with diesel prices elevated compared to historical norms, carriers are using updated surcharge tables that don't always track actual cost increases fairly. UPS restructured its fuel surcharge index so the range widens at higher price thresholds, meaning surcharges decline more slowly as fuel prices drop and shippers don't see relief they would have received under older structures. If brokers and carriers are adopting similar tactics, you need to audit the surcharge math on every contract before signing. Confirm the baseline diesel price, the assumed fuel economy, and which DOE report date the broker is using. If the numbers don't track, push back or walk.

The broader lesson: while the fuel surcharge has a connection to fuel costs, it's so much more than that,it's a profit center. When logistics companies tighten surcharge formulas to extract extra margin, the cost eventually lands on you. Small fleets that spot-check their surcharge calculations and demand transparency in how brokers calculate and retain these fees will protect their margins better than those who treat surcharges as a black box.