Inside Track: Drayage — The Highest Surcharge in the Chain

Lucas Lee Featured, News, Uncategorized

Drayage — the short-haul container move between a port or rail ramp and a nearby warehouse or distribution point — consistently carries the highest fuel surcharge of any trucking mode

The reasons are structural: short distances, heavy loads, port congestion, and chassis rental costs all compress efficiency. At the Port of Vancouver, the BC Container Trucking Commissioner published drayage fuel surcharges of 22% in January and February 2026, which surged to 30% in March — an eight-point jump in a single month. In the United States, port drayage surcharges are running even higher, with some operators publishing rates at 34% or above, and real per-mile costs for port drayage now exceeding $5.00 per mile when all fees are factored in. For importers moving containers through Vancouver, Prince Rupert, or any major U.S. gateway, drayage FSC is the first and most acute cost hit.

LTL: Structured, Weekly, and Sliding

Less-than-truckload freight operates on a different model. Surcharges are calculated as a percentage of the freight charge, applied by weight bracket, and reset weekly based on national diesel indices — the Freight Carriers Association of Canada (FCA) in Canada, and the DOE/EIA benchmark in the United States. U.S. LTL surcharges were running at approximately 27% in early January 2026, and with diesel now above $5.00/gallon, the market is broadly tracking 28%–33% for major carriers. Canadian LTL rates are running comparably, in the 26%–30% range. The key nuance with LTL is the two-week lag between the published fuel index and the surcharge taking effect — which means shippers are often paying yesterday’s rate while carriers are absorbing today’s cost. In a fast-moving spike environment like the present one, that lag creates genuine margin pressure for carriers.

Long-Haul 53′: Per Mile in the U.S., Percentage in Canada

Long-haul truckload — the backbone of North American freight — handles surcharges differently on each side of the border. In the United States, an OTR truckload fuel surcharge of $0.73 per mile is not unusual in the current environment, applied on top of an already elevated base linehaul rate. In Canada, long-haul surcharges are expressed as a percentage of linehaul, and carriers such as Universal Logistics have implemented a temporary 15% additional surcharge on top of existing contracted rates, effective March 23, 2026, for all Canadian domestic truck freight. This means shippers already carrying a 20% contractual surcharge are now effectively paying 35% — and that number remains in force until diesel prices stabilize.

What This Means for Your Business

Fuel can represent 30% to 40% of total road freight operating costs, making it the single largest variable in carrier pricing. The practical implication for shippers is this: a single container moving from the Port of Vancouver to a distribution centre in the Lower Mainland touches both drayage and long-haul surcharges — two separate structures, two separate calculations, compounding on the same shipment.

At Canaan Group, we have the carrier relationships, market intelligence, and freight expertise to help you navigate this environment — whether you are moving containers off the dock, consolidating LTL across Western Canada, or managing cross-border 53′ lanes into the United States. Now is the time to review your transportation agreements and ensure your surcharge exposure is understood, not absorbed quietly on every invoice.