How Affordable Freight Rates are Affected by Increasing Diesel Costs

How Affordable Freight Rates are Affected by Increasing Diesel Costs

The recent months show record-high prices of gasoline. Due to limited availability brought by conflicts in other countries, gone are the days when gas prices are low. It may take some time for affordable gasoline and diesel to be available. Aside from common people, increasing gas rates also impact transportation and courier companies in the Philippines. This is one factor why you may have already seen an increase in the usual freight rates.

6 Reasons Why Affordable Freight Rates are Affected by Fuel Price Increase

1. Fuel Surcharges

Fuel surcharges are important in the trucking industry as they are used to balance fluctuations brought about by fuel costs. This fee is charged and added to operational costs. Fuel surcharges also vary depending on fuel costs. Aside from the cost of the transport of goods, there are also baseline prices that determine the increase in surcharges.

2. Inflation

Rising fuel costs impact inflation. It affects the status of the economy, technology, politics, and even the environment. Inflation is one of the factors that lead to the increase in the prices of commodities. As prices of fuel increase, it can also be expected that there will be changes in the prices of shipping products.

3. Courier Rates

Fuel costs also impact the prices of carriers. This is somewhat expected as price adjustments would be necessary for courier companies to keep up with higher costs and avoid losses. Courier companies need to adapt and implement changes as charges for the transport of goods increase.  

4. Fuel Costs

Basically, freight rates would be affected by the fuel costs that carriers need to shoulder. Companies would have higher expenditures and would generate lower profits due to fuel surcharges.

5. Per-Mile Basis

Aside from the fuel costs, full truckload carriers also follow certain rules based on fuel cost fluctuations. For instance, the fuel surcharges they apply would be on a per-mile basis. 

6. Usage Rate 

Fuel usage rate slows down when companies in various industries focus on reducing driving frequency to save money. While this is intended to control fuel expenses, it would also require greater maintenance for the trucks to prevent untoward troubles and breakdowns while on the road.


As the cost of fuel increases, companies in the trucking industry would need to implement changes in the costs of their services. Affordable freight rates would increase to adapt to the changes. It would be essential for businesses that rely on trucking and courier companies to explore their options and know the strategies that they can implement to manage the effects of rising fuel costs.

At Worklink Services, Inc., we understand your frustration, especially with the increasing operational costs. Our company explores options to help you overcome business challenges. You can rely on us to offer cost-efficient trucking and courier services that businesses in the Philippines can rely on.

We offer cost-effective solutions to handle your requirements. Leave us a message today so we can help you.