For years, the fuel surcharge was the industry's default answer to rising costs. Pass the price along, adjust the formula, move on. That formula is being stress tested right now.
Fuel Costs Are Forcing a New Operating Model
UK diesel is running close to 182p a litre, more than a quarter above where it stood a year ago, and the EU average has pushed past 1.95 euros a litre after attacks on Red Sea shipping lanes squeezed European refining margins.
For many fleets, fuel now eats up 30 to 40 percent of total operating costs, trailing only driver pay. Surcharge resets can't keep pace with swings that steep, and shippers are growing tired of formulas that feel arbitrary.
The operators holding their margins right now are the ones treating fuel spend as an operational problem, not just a billing line item.
The Three Culprits Behind Excess Fuel Spend
That shift starts with three culprits: excessive idling, inefficient routing, and empty miles.
Together they can account for a significant share of a fleet's fuel budget, and all three are now genuinely fixable with tools that didn't exist a decade ago.
Idling Is Now a Visible, Manageable Cost
Idling used to be invisible. A driver waiting at a dock or running the AC during a break wasn't tracked, so it wasn't managed.
Telematics platforms like Samsara and Geotab changed that by giving fleet managers real time idle reports broken down by driver, vehicle, and location. Some fleets have used this visibility to cut idle time by double digit percentages simply by coaching drivers on the numbers.
The next layer is automation. Modern telematics systems can flag excessive idling as it happens and send an alert to a dispatcher, turning a quarterly report into a same day correction.
The next layer is automation.
Empty Miles Are an AI Matching Problem
Empty miles, when a truck runs without a paying load, are one of the most expensive inefficiencies in freight. Historically, filling that gap meant a broker working the phones.
Now, digital freight platforms such as Transporeon, Trimble, and project44 use predictive matching to pair available trucks with nearby loads before a truck ever goes empty.
These platforms analyse historical lane data, seasonal demand, and real time capacity to suggest backhauls that a human planner might miss.
Some carriers are also layering in their own machine learning models on top of transportation management systems to forecast where empty capacity is likely to appear days in advance, letting sales teams sell that capacity before it exists.
It's a small mindset shift, from reacting to gaps to predicting them, but it changes the economics of a route.
Routing Gets Smarter, Not Just Shorter
Shortest distance and fastest route are not the same as most fuel efficient route.
Tools like Trimble Maps and Route4Me now factor in traffic patterns, elevation, vehicle weight, and even driver behaviour history to build routes that minimise fuel burn rather than just minimising time.
For last mile operations, platforms such as Onfleet apply similar logic to delivery stops, sequencing them to reduce backtracking.
AI plays a quiet but useful role here too. Rather than recalculating a static route once a day, newer platforms continuously reroute based on live conditions, adjusting for a closed road or a sudden traffic jam without waiting for a dispatcher to notice.
Driver Behaviour Still Moves the Needle
Hardware and software only go so far. Harsh braking, aggressive acceleration, and excessive speeding can meaningfully increase fuel consumption per mile.
Fleet scorecards built into platforms like Motive and Samsara turn driver behaviour into a measurable, coachable metric, and many fleets report fuel savings simply from making that data visible and tying it to incentives.
The Executive Takeaway
None of these tools require ripping out existing systems. Most plug into a fleet's current telematics or TMS setup and start generating usable data within weeks.
The bigger shift is cultural: treating idling, empty miles, and inefficient routing as daily operational metrics rather than annual budget line items.
Fuel surcharges will always have a place in freight pricing, and getting that formula right still matters.
But the companies pulling ahead right now are the ones that stopped waiting for the market to hand back margin, and started building it themselves, mile by mile.
Key Takeaways
Fuel surcharges alone cannot keep pace with today's operating cost swings.
Idling, empty miles, and inefficient routing are all now measurable and fixable with modern tools.
The biggest gains come when fleets treat fuel management as an everyday operational discipline.