# Diesel floater

*Last updated: 2026-06-22*

> When a carrier quotes a road freight rate weeks before execution, rising diesel prices can erode the margin entirely.

When a carrier quotes a road freight rate weeks before execution, rising diesel prices can erode the margin entirely. The diesel floater addresses this: a contractual variable fuel surcharge clause that automatically ties the freight rate to a diesel price reference index, recalculated at set intervals – typically monthly – and shown as a distinct line item on the invoice. The mechanism is most common in road haulage, though equivalent clauses exist in sea and air freight under different names. Carriers benefit from predictable cost coverage; shippers get a transparent, formula-based adjustment they can verify and plan around, rather than opaque blanket rate increases.

**Source:** [https://en.wikipedia.org/wiki/Fuel_surcharge](https://en.wikipedia.org/wiki/Fuel_surcharge)

## Quick Facts

| Property | Value |
|---|---|
| Term | Diesel floater |
| Language | EN |
| Word count | 104 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Fuel_surcharge |

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