International Flexible Fuel Factor

The current fuel factor % for international services is:

Click here to view previous month's data
October 2016 0.00%
September 2016 0.00%
August 2016 0.00%
July 2016 0.00%
June 2016 0.00%
May 2016 0.00%
April 2016 0.00%
March 2016 0.00%
February 2016 0.00%
January 2016 0.00%
December 2015 0.00%
November 2015 0.00%
October 2015 0.00%
September 2015 0.25%
August 2015 0.75%
July 2015 1.00%
June 2015 0.50%
May 2015 0.00%
April 2015 0.25%
March 2015 0.00%
February 2015 0.50%
January 2015 2.50%
December 2014 3.50%
November 2014 4.50%
October 2014 5.50%
September 2014 5.50%
August 2014 6.00%
July 2014 5.50%
June 2014 5.50%
May 2014 5.50%
April 2014 5.50%
March 2014 5.50%
February 2014 6.00%
January 2014 6.00%
December 2013 6.00%
November 2013 6.00%
October 2013 6.00%
September 2013 5.50%
August 2013 5.00%
July 2013 5.00%
June 2013 5.50%
May 2013 5.50%
April 2013 6.50%
March 2013 6.00%
February 2013 5.50%
January 2013 6.00%
December 2012 6.00%
November 2012 6.50%
October 2012 6.00%
September 2012 5.00%
August 2012 4.50%
July 2012 6.00%
June 2012 7.00%
May 2012 7.50%
April 2012 7.00%
March 2012 6.00%
February 2012 6.00%
January 2012 6.00%
December 2011 5.50%
November 2011 6.00%
October 2011 5.50%
September 2011 6.00%
August 2011 6.00%
July 2011 6.00%
June 2011 7.00%
May 2011 6.00%
April 2011 0.00%
March 2011 0.00%
February 2011 0.00%
January 2011 0.00%
December 2010 0.00%
November 2010 0.00%
October 2010 0.00%
September 2010 0.00%
August 2010 0.00%
July 2010 0.00%
June 2010 0.00%
May 2010 0.00%
April 2010 0.00%
March 2010 0.00%
February 2010 0.00%
January 2010 0.00%
December 2009 0.00%
November 2009 0.00%
October 2009 0.00%
September 2009 0.00%
August 2009 0.00%
July 2009 0.00%
June 2009 0.00%
May 2009 0.00%
April 2009 0.00%
March 2009 0.00%
February 2009 0.00%
January 2009 0.00%
December 2008 0.00%
November 2008 0.00%
October 2008 0.00%
September 2008 4.00%
August 2008 3.50%

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Overview

Fuel costs are understandably one of the most significant and variable cost components of our business. The Flexible Fuel Factor (FFF) was introduced for the purpose of recovering the increased costs in fuel.

The International FFF for a specific month is based on the average Dubai Crude Oil (Fateh) spot price in US$ per barrel from two months earlier. By using this mechanism, we can:

  1. Provide transparency for customers to see how it is calculated
  2. Take into account any shifts in the price of fuel that impact significantly on the price of moving courier items
  3. Pass on any reductions, should the price of fuel decrease
  4. Give New Zealand Couriers customers advanced notice of what the FFF will be for a given month

The FFF will be subject to monthly adjustments linked to a rounded monthly average spot price for US$ per barrel, as published by the International Monetary Fund (IMF), details can be found here.

The implementation of the FFF brings our International consignment billing practice inline with the other key providers in the international market.

FAQs

Q: What is the Flexible Fuel Factor (FFF)?

In addition to the usual tariff charge, a variable price component is added to derive the total price you pay for your consignment.

The total price you pay for a courier product/service will comprise of two components - the base price and Flexible Fuel Factor. Multiplying the base price by the Flexible Fuel Factor will give the total price.

For example:

If a ticket costs $10.00 and the FFF for the month is 3.50%, then:
Base price + (base price x FFF) = Total Price
$10.00 + ($10.00 x 3.50%) = $10.35
    FFF = $0.35

Q: How do I find out the current FFF?

The New Zealand Couriers website will be updated monthly with the FFF surcharge percentage. In addition you can phone the International Helpdesk on 0800 655 010 or talk with your New Zealand Couriers Account Manager.

Q: How do I calculate the TOTAL price of the International consignment?

Use the International tariff sheet to get the base price. Multiply the base price with the current FFF and add this figure to your original base price. This will give you the total price to charge your customer. Alternatively, contact the International helpdesk on 0800 655 010.

Q: Where can I find market information in relation to fuel cost developments?

Fuel costs, including the spot price for Dubai Crude Oil, are published in US$ per barrel by the International Monetary Fund (IMF). Details can be found here.

Q: Why is New Zealand Couriers using an index linked to Dubai Crude Oil (Fateh) oil prices?

We base our index-linked FFF on the average Dubai Crude Oil (Fateh) spot price, as crude oil is the base product in jet fuel and truck diesel used in air and road transportation and this index will enable us to keep pace with fluctuations in the price of the fuel on a month by month basis.

Q: How does the index correspond with the FFF each month?

The index tables below show average Dubai Crude Oil (Fateh) in February will be used to determine the applicable FFF in April.

Q: Is the FFF used to calculate my total shipment price determined with reference to the indexed price of fuel that month?

No, due to the release dates of the fuel price data, there is a two month lag in the application of the index. For example, the monthly average price for Dubai Crude Oil (Fateh) in February will be used to determine the applicable FFF in April.

Q: How will I be updated on the FFF?

The FFF is updated every month and is published here on our website at the earliest opportunity.

We recommend you check our website for regular updates.

The International FFF applying to your shipment is included in the international consignments that are detailed on your New Zealand Couriers invoice.

Q: Where can I find market information in relation to fuel cost developments?

The average Dubai Crude Oil (Fateh) spot price, in US$ per barrel, is sourced from the International Monetary Fund (IMF). Details can be found here.

For Domestic shipments the weekly average diesel price is published in NZ$ per litre by the Ministry of Economic Development. Details can be found here.


Flexible Fuel Factor Increase Table - International Index