A fuel surcharge is an additional fee applied to the cost of transportation services to cover the fluctuating cost of fuel. This surcharge is typically added by carriers to compensate for rising fuel prices, ensuring that transportation costs remain stable despite fuel price volatility. The fuel surcharge is commonly applied to freight shipments and can vary depending on the current market price of fuel. It is meant to help businesses manage unexpected fuel cost increases without constantly adjusting base rates. In shipping and logistics, understanding fuel surcharges is crucial for accurate cost planning and budgeting.