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 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 U.S. Gulf Coast kerosene-type jet fuel (USGC Price) in US$ per gallon 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 gallon, as published by the U.S. Energy Information Administration, details can be found here.

The implementation of the FFF brings our International consignment billing practice in 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 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 U.S. Gulf Coast kerosene-type jet fuel (USGC Price) are published in US$ per gallon by the U.S. Energy Information Administration. Details can be found here.

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

The index tables below show average U.S. Gulf Coast kerosene-type jet fuel (USGC Price) 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 U.S. Gulf Coast kerosene-type jet fuel (USGC Price) 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 on our website at the earliest opportunity.

We recommend you check our website for regular 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) are published in US$ per gallon by the U.S. Energy Information Administration. Details can be found here.


International Fuel Surcharge Table