OnTrac FSC Increase of 1.5% Takes Effect April 6
OnTrac is increasing its fuel surcharge by 1.5 percent effective April 6. This is not an isolated move. It reflects a broader shift in how carriers drive revenue. Fuel surcharges are no longer just cost recovery tools. They are now active pricing levers that can move quickly and impact your total spend.
These changes matter because FSC applies to most transportation charges. Even small percentage increases create meaningful cost impact across your network. More importantly, these adjustments often happen outside traditional rate increase cycles. That limits visibility and reduces shipper control.
Why This Matters for Parcel Shippers
This creates three immediate risks:
- Total landed cost rises without warning.
- Benchmarking becomes more difficult across carriers.
- Negotiated discounts lose effectiveness when FSC continues to climb.
In many cases, FSC increases are not aligned with actual fuel cost movements. This creates a disconnect between market conditions and what you pay. As a result, shippers who focus only on base rates miss a significant portion of cost exposure.
FSC Is a Strategic Revenue Lever
Carriers have evolved how they use fuel surcharges. FSC is now one of the easiest ways to increase yield.
Here is why:
- FSC applies broadly across services and charges
- It can be adjusted frequently with limited notice
- It is rarely negotiated as aggressively as base rates
This gives carriers flexibility to protect margins and grow revenue. For shippers, this means cost increases can happen quietly and compound over time.
What Parcel Shippers Should Do Next
You need to treat FSC as a core part of your pricing strategy.
Focus on these actions:
- Audit current FSC tables across all carriers
- Compare surcharge structures, not just percentages
- Model total cost impact across your shipping profile
- Push for FSC caps, limits, or alternative structures in negotiations
- Monitor weekly changes, not just annual increases
Shippers that actively manage FSC gain visibility and control. Those that do not will see steady margin erosion.
How ebb Logistics Helps You Stay Ahead
ebb Logistics helps you take control of hidden cost drivers like fuel surcharges.
We work alongside your team to:
- Benchmark your FSC against current market conditions
- Identify gaps in your agreements and pricing exposure
- Model true total cost, including surcharges and accessorials
- Negotiate contracts that protect you from uncontrolled increases
- Continuously monitor changes so you are never caught off guard
Our approach is carrier neutral and data driven. We focus on protecting your margin while maintaining strong carrier relationships. Fuel surcharge changes are not going away. Carriers will continue to use them as a pricing lever.
If you are not actively managing FSC, you are leaving cost on the table.
Now is the time to evaluate your agreements and take back control.
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