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International Fuel Factor

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International Flexible Fuel Factor

HOME : FLEXIBLE FUEL FACTOR : INTERNATIONAL FLEXIBLE FUEL FACTOR

The current fuel factor % for international services is:

September 2010

0.00%

August 2010

0.00%

July 2010

0.00%

Click here to view previous month's data

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 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:

  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 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.


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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 + GST
$10.00 + ($10.00 x 3.50%) = $10.35 + GST
    FFF = $0.35 + GST

Q: Why is the FFF using an index based on the Rotterdam ARA jet fuel spot price?

It was chosen to base the international index-linked FFF on the Rotterdam ARA jet fuel spot price for jet kerosene because it links the FFF to fluctuations in the prevailing market price for jet fuel which in turn is a key influencer in international courier costs.

Q: How do I find out the current FFF?

The New Zealand Couriers website www.nzcouriers.co.nz 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 jet kerosene, are published in US$ per gallon by the US Department of Energy. Details can be found here.


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Flexible Fuel Factor Increase Table

Rotterdam (ARA) spot price of kerosene jet fuel (US$/Gallon)
At least But less than Applicable FFF%
0% $3.48 0%
$3.48 $3.55 0.5%
$3.55 $3.62 1.00%
$3.62 $3.69 1.50%
$3.69 $3.76 2.00%
$3.76 $3.83 2.50%
$3.83 $3.90 3.00%
$3.9 $3.97 3.50%
$3.97 $4.04 4.00%
$4.04 $4.11 4.50%
Click here to show more data
$4.11 $4.18 5.00%
$4.18 $4.25 5.50%
$4.25 $4.32 6.00%
$4.32 $4.39 6.50%
$4.39 $4.46 7.00%
$4.46 $4.53 7.50%
$4.53 $4.60 8.00%
$4.6 $4.67 8.50%
$4.67 $4.74 9.00%
$4.74 $4.81 9.50%
$4.81 $4.88 10.0%
$4.88 $4.95 10.50%
$4.95 $5.02 11.00%
$5.02 $5.09 11.50%
$5.09 $5.16 12.00%
$5.16 $5.23 12.50%
$5.23 $5.30 13.00%
$5.3 $5.37 13.50%
$5.37 $5.44 14.00%
$5.44 $5.51 14.50%
$5.51 $5.58 15.00%
$5.58 $5.65 15.50%
$5.65 $5.72 16.00%
$5.72 $5.79 16.50%
$5.79 $5.86 17.00%
$5.86 $5.93 17.50%
$5.93 $6.00 18.00%

$6.00

$6.07 18.50%