Customer levies and surcharges

Reduce revenue leakage by accurately managing fuel levy rates and surcharges

Keep tabs on the actual fuel costs per job, avoiding any missed charges or revenue losses. With TransVirtual, you can adapt fuel levy rates on the fly, ensuring that you’re always on top of your finances.

truckload outbound for delivery making use of fuel levy rate logistics software

Set fuel levy rates on the go

You have the flexibility to choose how you implement fuel levies: create a single levy for all customers, apply different levies to various customer groups, or customize an individual levy for each customer. Stay updated on fuel price fluctuations to ensure you maintain your revenue and enjoy potential cost savings.

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What is a Fuel Levy?

A fuel levy is a surcharge added by transport companies to cover fluctuating fuel costs. So instead of offering fixed rates to clients, you provide a base rate along with a fuel surcharge to prevent revenue loss. 

With TransVirtual’s Transport Management System, you can easily update fuel levies on the go to stay competitive and profitable.

Auto Calculate Fuel Surcharges

Fuel prices are always fluctuating. Make sure your transport business isn’t underquoting your services by using base rates and fuel surcharges to provide accurate and competitive quotes.

Set up customer levies 

TransVirtual lets you easily create and tailor levies and surcharges. These can be based on percentages or flat rates or linked to specific dates or date ranges.

fuel levy rates - software
delivery truck dispatch software

Set varying levies per stakeholders

Set different levies for customers, agents, and on-forwarders.

Flexible Customization

Adapt levies to suit your needs. Set them by zones, like cities versus regions, or by freight type, such as cartons versus pallets. Choose the metrics that work best for your operations.

Tailored to Your Business

Our system adapts to your business model. Apply levies per shipment or invoice, using either percentages or flat rates. Easily add extra fees like account charges and more. We provide the tools; you set the rules.

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Understanding Fuel Surcharge Calculation

Calculating fuel surcharges

To accurately determine fuel surcharges, transportation companies must closely monitor current fuel prices, typically expressed in cents per gallon.

This practice ensures that freight rates remain in sync with the ever-changing fuel market, protecting you from revenue loss.

Implementing Transparent Fuel Surcharge Policies

Ensure transparency with clients by communicating your fuel levy policy, including how they’re calculated, effective dates, and pricing impacts. Update contracts as needed to incorporate fuel levy provisions.

Strategies for Effective Fuel Levy Calculation

Monitor Fuel Costs

Keeping up to date with current fuel costs is vital for accurately calculating fuel levies. Transport companies can use this information to tailor their fuel levies, ensuring that invoices accurately reflect the fluctuating trends in the market. This approach helps companies offset fuel expenses, especially for heavy vehicles.

Leveraging the U.S. Government’s Fuel Tax Credits

Fuel tax credits offer significant benefits for U.S. transport operators. These credits apply to both highway and off-highway fuel uses, including auxiliary power units, pumps, refrigeration units, school buses, and local buses.

When calculating fuel levies, consider these rebates to reduce overall fuel costs, ensuring levies reflect actual expenses. This results in cost savings for both companies and clients.

Managing the Impact of Fuel Prices on Transport Costs

Responding to Fluctuating Fuel Prices

Transport operators often struggle with maintaining profitability amid fluctuating fuel prices. Swiftly adjusting fuel surcharges is vital to respond to market shifts. This flexibility also helps operators effectively manage extra expenses linked to fuel price changes.

In addition to reacting to changes, proactive steps like adopting fuel-efficient technologies and optimizing routes boost cost-effectiveness. Considering alternative fuels and tapping into government incentives for sustainability can also enhance long-term savings and environmental responsibility.

Balancing Costs and Customer Expectations

In the age of instant gratification, transport companies face the challenge of balancing rising fuel costs with customer expectations. By factoring current fuel prices into freight rate calculations, companies can justify necessary additional costs. The best part? You don’t need to do it on your own. A transportation management system like TransVirtual streamlines fuel surcharge management with automated calculations based on customizable parameters.

Join the thousands of transport companies managing fuel levy surcharges with TransVirtual.

Experience a versatile and highly configurable system that lets you manage levies or surcharges.