Fuel is one of the most visible and most volatile costs in the transportation industry. When diesel prices rise, the impact extends far beyond the pump. Higher fuel costs can affect freight rates, distribution expenses, margins, and ultimately the cost of moving products through the supply chain.
For food and beverage companies in particular, transportation is critical to getting products from manufacturers and distribution centers to retailers. Understanding how fuel costs influence transportation pricing can help businesses make better decisions and plan more effectively.
Why Do Fuel Costs Affect Transportation?
Diesel is a major operating expense for trucking companies. As fuel prices increase, carriers face higher costs to operate equipment and move freight.
According to the U.S. Energy Information Administration (EIA), the national average retail diesel price reached $6.529 per gallon for the week of September 21, 2026. The EIA notes that diesel prices are influenced by factors including crude oil prices, refining margins, distribution costs, and taxes.
Higher fuel costs can contribute to:
- Increased transportation and freight costs
- Higher fuel surcharges
- Pressure on carrier operating margins
- Changes in routing and transportation decisions
- Increased costs across the broader supply chain
Even relatively small changes in transportation costs can have a meaningful impact when multiplied across hundreds of thousands of shipments.
What Is a Fuel Surcharge?
A fuel surcharge is an additional transportation charge designed to help account for fluctuations in diesel fuel costs.
Fuel surcharges are typically tied to a fuel-price index and adjust as fuel prices move. However, there is no universal fuel-surcharge formula. The methodology, baseline price, adjustment frequency, and other details can vary by carrier and customer agreement.
Understanding how fuel surcharge is calculated can help businesses better understand changes in their costs.
How Can Businesses Offset Rising Transportation Costs?
Businesses cannot control the price of diesel, but they can look for ways to make every shipment more efficient.
Consolidation is one opportunity. Moving more product in fewer, better-utilized shipments can reduce the number of miles driven and spread transportation costs across a greater volume of freight. In simple terms, higher density and better utilization can mean lower transportation costs per unit.
Businesses can also look for opportunities to:
- Improve pallet and cube utilization to maximize trailer space.
- Review order frequency to determine whether shipments can be consolidated.
- Reduce unnecessary miles through better routing and scheduling.
- Align pickup and delivery schedules to improve asset utilization.
- Minimize detention by improving loading and unloading efficiency.
These strategies do not eliminate the impact of higher fuel prices, but they can help businesses get more value from every mile and every shipment.
For food and beverage companies, those decisions must also account for temperature requirements, product integrity, service expectations and delivery windows. The goal isn’t simply to put more product on a truck, it is to build a transportation strategy that balances cost, service and reliability.
The Value of the Right Logistics Partner
Logistics providers cannot control diesel prices. What they can do is help customers understand how changing fuel costs affect their supply chain and identify opportunities to improve efficiency.
At FST Logistics, we believe that starts with transparency and communication. When fuel costs change, our role is not simply to pass along a higher number. It is to have informed conversations with our customers about what is driving the change, how transportation costs may be affected and where there may be opportunities to improve.
That may include evaluating shipment frequency, consolidation opportunities, pallet and cube utilization, routing, pickup and delivery schedules or other ways to improve transportation efficiency.
For food and beverage companies, having a logistics partner who understands the complexities of temperature-controlled transportation is especially important. At FST, we work alongside our customers to find the right balance between cost, service, reliability and product integrity.
Looking Beyond the Fuel Price
Fuel prices will continue to fluctuate. Businesses cannot always predict what happens at the pump, but they can control how efficiently they move their products.
The right logistics partner provides more than transportation. They provide visibility, communication and ideas for improving the supply chain when market conditions change.
At FST Logistics, we work with our customers to understand their transportation costs, identify opportunities for greater efficiency and make informed decisions, even when external factors like fuel prices are outside their control.
Managing logistics costs isn’t just about responding to the price at the pump. It’s about having the right partner, the right information and the right conversations.
Learn More
For current U.S. diesel pricing and information about fuel surcharges, visit the U.S. Energy Information Administration.
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