Additional Charges – How They Work

Overview

This article explains how additional charges are applied to freight jobs, including how they interact with the base freight rate and fuel surcharge (fuel levy). Understanding the order and method of calculation is critical for accurate pricing and reporting.

Charge Types and Calculation Logic

1. Freight Charges – Fixed

Definition:
A fixed dollar amount added directly to the primary freight rate.

Calculation Method:

1. Added to the base freight rate
2. Fuel surcharge is then calculated on the new total (including this charge)

Key Point:
✅ This charge increases the amount subject to fuel surcharge

2. Freight Charges – Percentage

Definition:
A percentage-based increase applied to the freight subtotal.

Calculation Method:

1. Applied as a percentage of the freight subtotal
2. Added to the freight amount
3. Fuel surcharge is then calculated on the updated freight total

Key Point:
✅ This charge also increases the amount subject to fuel surcharge

3. Overall Charges – Fixed

Definition:
A fixed charge applied after all freight and fuel calculations have been completed.

Calculation Method:

1. Freight charges calculated
2. Fuel surcharge applied
3. Fixed overall charge added at the end

Key Point:
❌ This charge does NOT attract fuel surcharge

4. Overall Charges – Percentage

Definition:
A percentage-based charge applied to the total job value.

Calculation Method:

1. Freight charges calculated
2. Fuel surcharge applied
3. All prior charges included in total
4. Percentage applied to the entire job total

Key Point:
✅ This charge is calculated on the full amount, including fuel surcharge

Summary Table

Key Takeaways

• Charges applied before fuel calculation increase the fuel levy.
• Charges applied after fuel calculation generally do not attract fuel.
• Percentage-based overall charges apply to the final total, including fuel and other charges.
• The order of calculation matters and directly impacts the final job cost.