Effective July 26, 2026, KeHE charges a variable fuel surcharge on Collect purchase orders, the KeHE Pick Up freight it moves on its own carriers, whenever the average United States diesel price is $3.899 or higher.
What does KeHE's fuel surcharge policy actually say?
From KeHE Inbound Routing Guide & Product Handling Requirements, Version 16, July 1, 2026, page 12, section 11:
"Effective July 26, 2026, KeHE will institute a variable fuel surcharge for all F.O.B. purchase orders ... when the average US diesel fuel is $3.899 or higher. The surcharge will be applied based on a published rate table and weekly diesel fuel price average."
How does the fuel surcharge get charged?
By mileage. KeHE's rate table sets a per-mile rate that moves with the weekly diesel average, and your charge is that rate times the lane miles on the purchase order. Page 12 refers only to a published rate table, so the per-mile basis is Revya's operator knowledge rather than KeHE's wording.
The same pallet count costs more on a long lane than a short one. And mileage is an input, which means it can be billed wrong.
Which KeHE suppliers pay the fuel surcharge?
Collect freight only. Supplier Delivered purchase orders are not in scope. The guide's own wording is "all F.O.B. purchase orders," and KeHE defines both of its shipping methods by a free on board term.
| KeHE Pick Up | Supplier Delivered | |
|---|---|---|
| Free on board term | Origin (Incoterms Ex Works) | Destination (Incoterms DDP) |
| Also called | Collect | Prepaid |
| Who arranges the truck | KeHE, with one of its carriers | The supplier, ideally using a KeHE preferred carrier |
Check which term your purchase order carries, since that is what decides whether a given charge is yours.
How much is the KeHE fuel surcharge?
It varies by week, off a rate table KeHE publishes separately in the Inbound Routing Guide Fee Schedule on the KeHE CONNECT Supplier Portal.
How is the KeHE fuel surcharge impacting margin?
Across Revya's client accounts, realized margin impact runs 1.3% to 3%.
When will the KeHE fuel surcharge go away?
When the weekly average diesel price falls below $3.899. It has not been close since early March.
The last weekly United States national average below that threshold was $3.897, the week of March 2, 2026. Every reading since March 9 has been above it, starting at $4.859. The week of September 28, 2026 came in at $6.382, after a $6.529 peak the week of September 21 — the highest national average in the Energy Information Administration's thirty-two years of tracking diesel. Diesel would have to fall about 39% to clear the trigger.
The Energy Information Administration publishes the weekly average, so you can check the trigger yourself.
Can you dispute a KeHE fuel surcharge?
Two grounds.
- The mileage is wrong. Compare the miles billed against the actual lane from your pickup location to the receiving distribution center.
- The freight terms are not yours. The surcharge belongs to Collect freight, so a charge against a Supplier Delivered purchase order should not be there.
File within 180 days of the deduction through KSolve on the KeHE CONNECT Supplier Portal, or the objection is waived. Include the purchase order number and the bill of lading or other proof of delivery signed by a KeHE employee. The same 180-day clock governs every other line on your remittance.
What can you do about it?
- Read your fee schedule. Pull the current Inbound Routing Guide Fee Schedule from the KeHE CONNECT Supplier Portal.
- Consolidate shipments. A per-mile charge spread across a fuller truck costs less per case.
- If the answer is a price increase, start early. KeHE requires cost changes at least ninety days before its published price change effective date, with written justification and copies of your published price lists, and reserves the right to reject an increase it considers unreasonable.
How Revya handles this
Revya reconciles KeHE remittances line by line, checking each fuel surcharge against the lane miles and the freight terms on the purchase order it was billed to. Also useful: the KeHE and UNFI dispute guide and the glossary of charge names.
See how Revya validates KeHE deductions
Frequently asked questions
What are KeHE FSD deductions?
FSD is the code Revya's operators see on KeHE remittances for the fuel surcharge: the variable charge KeHE's routing guide applies to Collect purchase orders whenever the average United States diesel price is $3.899 or higher, effective July 26, 2026. The code itself does not appear in the guide.
What diesel price triggers the KeHE fuel surcharge?
An average United States diesel price of $3.899 per gallon or higher, assessed against a weekly average.
How is the KeHE fuel surcharge calculated?
By mileage: a per-mile rate from KeHE's rate table, times the lane miles on your purchase order.
Which KeHE suppliers does the fuel surcharge apply to?
Collect, or KeHE Pick Up, freight. Supplier Delivered purchase orders are not in scope, so check which designation your purchase order carries.
On what grounds can you dispute a KeHE fuel surcharge?
Two: the mileage it was calculated on was wrong, or the charge landed on a Supplier Delivered purchase order, which is not in scope.