March 12, 2025

What is a Fuel Surcharge and Why do Car Transport Companies in Canada Charge One?

With the cost of living in Canada on the rise, you might find yourself paying a little more attention to your budget and everyday expenses. If you have recently obtained a quote for car transport, you might have noticed a line for fuel surcharge, and understandably, you might have questions about this added cost. This blog will help clarify why car transport companies include a fuel surcharge in their quotes and how it helps to keep shipping prices low.

What is a Fuel Surcharge?

A fuel surcharge is a pretty standard practice in the transportation industry. Everyone from airlines and shipping companies to services like food delivery and ride-sharing apps add fuel surcharges to their rates to account for fluctuating fuel costs. Historically, the cost of fuel was included in the price of things like airline tickets and vehicle shipping, but with fuel prices becoming increasingly volatile and unpredictable, businesses choose to separate this cost from their separating this cost from their base shipping rates.

Fuel Surcharges Typically Save You Money

Now, we get it, no one likes to feel like they are getting charged twice for the same service. After all, shouldn’t the cost of fuel be included in the cost of transporting a car? Well, yes and no. When a car transport company gives you a quote, say, to ship your car from Calgary across Canada, they can only see what fuel costs today. If the company needed to plan for fluctuating fuel costs, which may be significantly higher on the date you ship your vehicle, they would need to increase your quote to account for the highest possible fuel price.

By separating the fuel surcharge from your car shipping quote, the transportation company is able to give you the lowest estimate possible while maintaining stable prices. This helps ensure the company can remain profitable—and in business—without overcharging customers. Providing a separate estimate for the fuel surcharge also increases pricing transparency, allowing you to see exactly how fuel costs impact your total shipping price.

How do Car Transport Companies Calculate Fuel Surcharges?

Your fuel surcharge isn’t just a random number added to your bill. Transport companies calculate the amount based on the average weekly cost of diesel, which is published by the Freight Carriers Association of Canada and other industry sources. They compare this to a predetermined base fuel cost, and then factor in the distance traveled to determine the final surcharge amount.

How to Minimize Your Fuel Surcharge Fee

Even though fuel surcharges play an important role in keeping vehicle shipping rates fair and transparent, nobody wants to pay more than necessary to ship their car. While you can’t avoid fuel costs altogether, you might be able to reduce your overall shipping expenses.

Be Flexible with Shipping Dates

When it comes to car transport, the more flexible you can be with dates, the more money you can save—and this includes the fuel surcharge. Fuel prices are often highest during the summer months when demand peaks and lower over the winter. If you can time your shipment during a period of lower fuel costs, you may be able to save not only on shipping costs but also on the fuel surcharge.

Get More Than One Quote

Not all car transport companies have the same method or baseline for calculating their fuel surcharge. An easy way to save money on car shipping costs is by obtaining multiple quotes and comparing how each company structures their pricing. Some companies may offer lower base shipping rates but charge a higher fuel surcharge, while others take a different approach. Either way, shopping around helps you find the best deal on your car transport in Canada.