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When fuel prices surge in the futures market, motor carriers face an immediate cost risk that standard fuel surcharges cannot fully mitigate. While fuel surcharges offset costs on loaded miles, deadhead (empty) miles are entirely uncompensated. Fleet operations running typical over-the-road deadhead rates of 11% to 12%—or specialized automotive networks experiencing 18% to 20% empty miles due to network directionality—absorb massive uncompensated fuel expenses, severely eroding operating margins
2:50
When fuel prices surge in the futures market, motor carriers face an immediate cost risk that standard fuel surcharges cannot fully mitigate. While fuel surcharges offset costs on loaded miles, deadhead (empty) miles are entirely uncompensated. Fleet operations running typical over-the-road deadhead rates of 11% to 12%—or specialized automotive networks experiencing 18% to 20% empty miles due to network directionality—absorb massive uncompensated fuel expenses, severely eroding operating margins
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