Research Project:

Investigation of Methodologies Used by Less-Than-Truckload (LTL) Motor Carriers to Determine Fuel Surcharges

Final Report

PDF version 207 kb

Principal Investigator

John L. Kent
Missouri State University
(417) 836-6346
johnkent@missouristate.edu

Project Objective

The purpose of this research project is to conduct an investigation into the LTL motor carrier industry to determine the various methodologies for establishing and implementing fuel surcharges. The ultimate goal for this research stream would be to develop a national fuel surcharge index.

Project Abstract

For over 20 years, fuel surcharges have been periodically added to transportation invoices in an effort by the transportation provider to recover temporary spikes in fuel prices. However, for the past 3 years, fuel surcharges have been a constant component on transportation invoices as fuel costs have continued to rise. Based on in-depth interviews with Mihlfeld and Associates (a third-party logistics company whose core competency is LTL transportation), an industry standard methodology accepted by both the carrier and shipper for calculating fuel surcharges does not exist.

Task Descriptions

Review academic and popular press literature and write-up results
Determine carriers and contact to include in sample
Develop interview protocol
Pre-test interview protocol
Conduct interviews and analyze transcripts
Write executive summary
Prepare PowerPoint presentation
Write manuscript

Potential Benefits of the Project

Graduate Student Research.

Budget

$10,000 MTC/ $12,358 Cost Share (12-month project)

TRB Keywords

Fuel surcharge, Third-party logistics, Less-than-truckload, Motor carriers.