Fuel Surcharge | Concargo

Fuel Surcharge

According to regulatory authorities the fuel component of a transporter’s variable costs has reached 42% as of 21 February 2008.

This is up from 36% in 2006 and further fuel increases will push the factor even higher. With no end in sight, and the world oil reserves under pressure, it is noted that there is still an overwhelming amount of operators who do not enforce a fuel surcharge to cover their costs.

It might be said that it is a dual non-profit purpose to have a fuel surcharge but the majority of customer know that there is a very slim chance, if any, that the fuel price will come down to levels below that of 2009.

Please note: the fuel adjustment factor (FAF) is applied to limit the impact of the fluctuating fuel price. Based on our model and to ensure that we maintain a level of data quality, the management team has decided that the FAF calculation is revised every three months. The next FAF revision will be in July and October 2010, taking an average of the preceding three months.

All rates are subject to the prevailing fuel surcharge. The fuel surcharge adjustment factor (FAF) is determined using the following formula: