Page Navigation
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 will be calculated on the first day of each month and will be based on the Rotterdam ARA jet fuel spot price for jet kerosene from two months earlier. By using this mechanism, we can:
- Provide transparency for customers to see how it is calculated
- Take into account 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 jet fuel decrease
The FFF will be subject to monthly adjustments linked to a rounded monthly average spot price for a gallon of jet kerosene, as published by the US Department of Energy. The implementation of the FFF brings our International consignment billing practice inline with the other key providers in the international market.
|