Fuel Surcharge Increase – Get The Facts.
This year, Australians can expect to see a rise in the price of freight because of the increased cost of fuel. This is due to the increase in international freight fuel across the board. Many companies are passing on the cost of rising fuel prices to their customers. So far, Australian domestic carriers such as Qantas and Virgin have both announced they will be increasing their freight fuel surcharge rates.
What does this mean for Australians sending parcels and freight?
Higher fuel prices will eventually lead to higher prices for goods and services – that’s just the way things are. For example, DHL has already announced that it will be increasing its domestic freight prices this year, make sure you factor in these increased costs. Fuel surcharges are created by our carrier partners, and One World Courier are not responsible for the increases. Our costs remain the same, it’s the carriers who have decided to increase their freight costs. I think we all agree, fuel prices have rise over the last year, which can have those ripple effects whereby we question why are these price hikes continually occurring?
The cost of fuel is one of the biggest expenses for freight companies, and with oil prices on the rise again, those costs are only going to go up. To offset these higher costs, many freight companies are increasing their fuel surcharges. Fuel surcharges are a way for freight companies to pass on these increased costs to their customers – that’s you! – in the form of
FedEx fuel surcharge for instance in international air freight has also increased this year. UPS has also announced that it will be increasing its freight fuel surcharge rates even further, while its ground and home delivery services could see an increase.
TNT Express has also increased its Fuel Cost Surcharge per kg for all shipments, and it’s partner company TNT Economy Express has also seen a significant rise in per kilo.
As you would expect, International carrier DHL has upped the Fuel Cost Surcharge this year, causing many customers to question the reason for such a large increase.
Domestic freight prices in Australia.
Fuel costs are a significant part of business expenses and fuel prices have increased significantly in recent months, with the price of crude oil reaching a two-year high. The current fuel surcharge levels may not adequately cover the higher running costs incurred by freight companies.
If you’re a One World Courier customer that ships products internationally, or if you use any of the above-mentioned carrier/courier services, you may pay more for shipping this year. Again, we want to remind out customers that this is not a One World Courier cost increase. This rise in fuel costs are passed on to us and therefore will mean everyone choosing these services will absorb the increases. Fuel surcharges may rise across the board, so it’s important to factor this into your freight budgeting for the year ahead. We’ll continue to monitor the situation and keep you updated on any changes that may affect freight costs for your business.
The One World Courier online booking and freight pricing system will help you manage these increases and budget for your shipping needs accordingly. Our Fuel Surcharge Index tracks the changes in fuel prices so you can see how they’re affecting your freight rates, and our online booking system makes it easy to get dozens of ‘live’ quotes for your shipments.
Contact us today to find out more about how we can help you save money on your business shipping costs.