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 ContractsFuel Surcharge Types
Alvys supports three types of fuel surcharge calculations:Creating a Fuel Surcharge Contract
Step 1: Navigate to Fuel Surcharge Contracts
- Go to Companies > Customers in the left sidebar
- Select the Customer you want to set up the contract for to open Customer Profile
- Click Contracted Lanes & Fuel Surcharges button in top right corner of the page.
- Click the Fuel Surcharge Contracts tab
- Click Add New Contract
Step 2: Configure Contract Details
Fill in the following fields on the Details tab: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:
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
- 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.- Go to Companies > Customers in the left sidebar
- Select the Customer you want to set up the contract for to open Customer Profile
- Click Contracted Lanes & Fuel Surcharges button in top right corner of the page.
- Open or Create Contract
- In the contract details, select the Fuel Surcharge Contract from the dropdown
- Save the lane rate contract
How the Calculation Works
When a load is created or updated with a lane rate contract that has a fuel surcharge:- The system determines the load date (based on the contract’s Load Date setting)
- It applies the date offset to determine which week’s fuel prices to use
- It looks up the EIA weekly fuel price for the configured region
- 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
- The result is rounded per the contract’s rounding setting
- The surcharge appears as a separate line item on the load
Example: Setting Up a Distance-Based Fuel Surcharge
Let’s say your customer contract states: “Fuel surcharge is 0.05 increase in fuel price above $3.00/gallon.” Here’s how you’d set it up:- Create a new Fuel Surcharge Contract
- Set Type to Distance
- Set Load Date to Scheduled Pickup
- Set Date Offset to Previous Week (most common)
- Set Region to U.S.
- On the Matrix tab, add rows:
If the EIA fuel price for the load’s week is 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.”- Create a new Fuel Surcharge Contract
- Set Type to Percentage
- Configure Load Date, Date Offset, Region, and Rounding as needed
- On the Matrix tab, add rows:
💡 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 2,000, the surcharge would be: 0.08 x 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.