Parcel Fuel OptimizerFuel cost per $100 shipped, and how to pay less · Published by Logistics Contract Optimizer

Parcel fuel glossary

32 terms you will meet on invoices, in carrier notices and in contract talks.

Accessorial charge
A charge on top of the base rate for an extra service or condition, such as residential delivery or additional handling. Fuel is often applied to accessorials too.
Additional handling
A per-package accessorial for items that are heavy, long or not fully enclosed in corrugated cardboard.
Base rate
The published or contracted transportation charge before accessorials and fuel.
Calculated rate
On this site, a surcharge derived from the carrier’s published table and the applicable EIA fuel price, pending the carrier’s own publication.
Carrier published
On this site, a surcharge read from the carrier’s own publication.
Collar
A fuel cap paired with a floor: the surcharge cannot rise above one level or fall below another.
Delivery area surcharge (DAS)
An accessorial for deliveries to ZIP codes the carrier classifies as remote or extended.
Demand surcharge
A temporary per-package or per-pound charge carriers apply during peak periods.
DIM weight
Dimensional weight: a billable weight based on package size. The carrier bills the greater of actual and DIM weight.
EIA
The U.S. Energy Information Administration, which publishes the weekly diesel and jet fuel prices carriers index to.
Estimated rate
On this site, a surcharge based on incomplete information, such as an averaging window a carrier does not fully publish.
Fuel cap
A contract term that limits the fuel surcharge to a maximum percentage.
Fuel discount
A contract term that reduces the published fuel surcharge by a percentage of itself.
Fuel per $100
Our way of quoting a surcharge: the dollars of fuel charged per $100 of charges it applies to. 30.25% is $30.25 per $100.
Fuel table
A carrier’s published schedule that converts a fuel price into a surcharge percentage.
Gulf Coast jet fuel
EIA’s weekly U.S. Gulf Coast kerosene-type jet fuel spot price, the index for most air and express surcharges.
General rate increase (GRI)
A carrier’s annual increase to list rates, usually announced in the fall and effective early in the new year.
Index
The fuel price a surcharge is tied to, such as EIA’s national on-highway diesel price.
On-highway diesel
EIA’s weekly average retail price of diesel fuel in the United States, surveyed on Mondays; the index for ground surcharges.
PADD
Petroleum Administration for Defense District: the regions EIA uses for regional fuel prices.
Percentage point
The unit for differences between percentages. A move from 29.25% to 30.25% is one percentage point.
Pivot price
The fuel price in a table below which steps become coarser, so the surcharge falls more slowly as fuel drops.
Points off
A discount stated as fixed percentage points below the published surcharge, rather than as a percentage of it.
Re-opener
A clause that allows terms to be renegotiated when a stated event occurs, such as a fuel table change.
Residential surcharge
An accessorial for delivery to a home rather than a business address.
Stale
On this site, a rate that could not be verified within its expected update window; the last known value is shown with its date.
Step
The increment by which a table changes the surcharge, usually 0.25 percentage points per band of fuel price.
Table freeze
A contract term that fixes the fuel table in force at signing for the length of the agreement.
Table reset
A carrier’s publication of a new fuel table, which can change the surcharge at the same fuel price.
ULSD
Ultra-low sulfur diesel, the diesel fuel used by trucks. Wholesale ULSD prices lead retail diesel prices.
Wholesale diesel
The spot price at which diesel trades between refiners, traders and distributors at hubs such as New York Harbor.
Zone
A band of distance between origin and destination that carriers use to set base rates.