The diesel floater is a variable fee that serves to balance out fluctuating diesel costs on the energy market and basically serves as a calculator of the diesel surcharge - a variable pricing element added to the base cost of transportation. With this tool, the management of fuel price changes can be handled right away by a suitable arrangement between the customer and the transport service providers. Unwanted interactions between the parties are thus avoided. This is therefore an appropriate strategy to fairly resolve the issue of fuel price variations between contracting parties. It is frequently put into practice based on the amount of the shipment, and it is regularly agreed upon with all service providers. On the forwarding invoice, the valid diesel surcharge is typically listed as a separate item.  

Both the shipper and the provider of transportation services may run risks with fixed pricing. In the worst circumstances, either the shipper is paying too much or they do not cover the service provider's additional costs. When used appropriately, a diesel floater agreement can be a useful instrument for managing fuel price increases in a fair and transparent manner between the shipper and the transport service provider based on cooperation in a commercial relationship that is meant to endure at least the medium term. Additionally, while requesting prices, purchasers must always indicate their own diesel floater. This guarantees that rates are actually comparable across all service providers and that all calculations are made using the same floater.

Regarding its calculation, the transport service providers merely need to multiply the change in the fuel price index by the portion of his individual diesel costs that make up his total costs (the so-called diesel cost share, for instance 28%) to determine the diesel surcharge.