| As a result of the increase in the fluctuation of oil prices, we will have to change the way our current fuel surcharge is being calculated. Below you can find specific examples and a detailed explanation of the changes that will become effective on April 1, 2008.
As you would know, over the last few years the price of oil has increased dramatically and has had a continuing drastic effect on our costs. Management here has tried over the past years to absorb these costs to reduce your costs. Unfortunately it is no longer possible that this continue.
We are sorry, but as we can no longer shoulder these extra costs, from April 1, 2008 the fuel surcharge that we charge you will be floated to fluctuate with Singapore Kerosene price. Under these circumstances, we hope that you will understand our decision and agree to this new system.
The update of the current surcharge and the policy of how it will be calculated each month are detailed below.
1) Description
- As the main market in the Asia/Pacific Basin is the Singapore Kerosene price, it is this index that will be used as a basis for the fuel surcharge fee percentage.
- During the comparatively stable period of 1995 – 1999, the average price of oil was US$23.20. As the price has increased dramatically since that time the fuel surcharge came into being. Using this Standard (US$23.20), the surcharge will be calculated in variance being it and the current Singapore Kerosene price.
2) Fluctuations in the Fuel Surcharge
- When there is an increase or decrease in the price of Singapore Kerosene against the Standard of 10%, there will be an according increase or decrease in the fuel surcharge of 0.5%.
- The surcharge percentage rate will be updated monthly on the 10th of every month. The rate will be calculated based on the Singapore Kerosene price of that day. The updated price will be effective for all freight
dispatched from the 1st of the next month until the next update become applicable from the 1st of the subsequent month.
- The new surcharge percentage will be published on our website every month on the 10th, to become effective on the 1st of the following month.
3) Application of the Fuel Surcharge
- The fuel surcharge will be applied to all
freight domestic or international regardless of
destination.
Click to download a Fuel Surcharge Rate Chart
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