International Flexible Fuel Factor

The current fuel factor % for International services is:


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Overview

Fuel costs are understandably one of the most significant and variable cost components of international courier line-haul. The Flexible Fuel Factor (FFF) was introduced for the purpose of recovering the variable nature of fuel costs.

The fuel surcharge percentage for New Zealand Couriers International services is subject to monthly adjustment based on the published U.S. Gulf Coast (USGC) spot price for Kerosene-Type jet fuel. Details can be found here.

By using this mechanism, we can:

  1. Provide transparency for customers to see how it is calculated
  2. Consider 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 implementation of the FFF practice is line 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 15%, then:
Base price + (base price x FFF) = Total Price
$10.00 + ($10.00 x 15%) = $11.50
    FFF = $1.50

Q: How do I find out the current FFF?

The table at the top of this page will be updated monthly with the FFF percentage.

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.

Q: Why is New Zealand Couriers using an index linked to the U.S. Gulf Coast kerosene-type jet fuel (USGC Price)?

We base our index-linked FFF on the average U.S. Gulf Coast kerosene-type jet fuel (USGC Price) as this fuel price is the major variable component of International linehaul costs. This index will enable us to keep pace with fluctuations in the price of fuel on a month by month basis.

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

Fuel surcharges will be applied effective the first Monday of each month unless such changes are introduced after said date, in which case the changes will be applied as of the effective date of the change. The surcharge percentage will be reflected on your invoice. Information on the fuel surcharge for each month will be available approximately one week before the surcharge is applicable.

Q: How will I be updated on the FFF?

The FFF is updated every month at the earliest opportunity and published on the table at the top of this page. We recommend you check this page regularly for updates.

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

The spot price for U.S. Gulf Coast kerosene-type jet fuel (USGC Price) is published in US$ per gallon by the U.S. Energy Information Administration. Details can be found here.


International Flexible Fuel Factor Table



New Zealand Couriers reserves the right to change the fuel surcharge index and table without notice. Both the amount and duration of the surcharge will be determined at New Zealand Couriers’ sole discretion. If the fuel surcharge rises above a maximum value of $2.45 or drops below minimum value of $1.07, or there are changes to the trigger points, the above table will be updated. Check this page regularly to stay updated.