The current fuel factor % for international services is:
- Click here to view previous month’s data
Fuel costs are understandably one of the most significant and variable cost components of international courier line-haul. The Variable Fuel Factor (VFF) 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:
- Provide transparency for customers to see how it is calculated
- Consider any shifts in the price of fuel that impact significantly on the price of moving courier items
- Pass on any reductions, should the price of fuel decrease
- Give New Zealand Couriers customers advanced notice of what the VFF will be for a given month
The implementation of the VFF practice is in line with the other key providers in the international market.
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 Variable Fuel Factor. Multiplying the base price by the Variable Fuel Factor will give the total price.
If a ticket costs $10.00 and the VFF for the month is 15%, then:
(base price x VFF)
($10.00 x 15%)
The table at the top of this page will be updated monthly with the VFF percentage.
Use the International tariff sheet to get the base price. Multiply the base price with the current VFF and add this figure to your original base price. This will give you the total price to charge your customer.
We base our index-linked VFF on the average U.S. Gulf Coast kerosene-type jet fuel (USGC Price) as this fuel price is the major variable component of International linehaul costs. This index will enable us to keep pace with fluctuations in the price of fuel on a month by month basis.
Fuel surcharges will be applied effective the first Monday of each month unless such changes are introduced after said date, in which case the changes will be applied as of the effective date of the change. The surcharge percentage will be reflected on your invoice. Information on the fuel surcharge for each month will be available approximately one week before the surcharge is applicable.
The VFF is updated every month at the earliest opportunity and published on the table at the top of this page. We recommend you check this page regularly for updates.
The spot price for U.S. Gulf Coast kerosene-type jet fuel (USGC Price) is published in US$ per gallon by the U.S. Energy Information Administration. Details can be found here.
International Variable Fuel Factor Table
|Kerosene-Type Jet Fuel (Dollars per Gallon)|
|At least||But less than||Applicable VFF%|
|Add 0.5% for each 6cents increase thereafter|
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.