Update change to North America Inland Fuel Surcharge calculation
We would like to inform you of the change to our Inland Fuel Surcharge (IFS/EFS) calculation. In order to align with latest industry trends, we will be changing our trigger baseline for IFS/ EFS from $3.20 to $2.52, effective March 15, 2021. The $3.20 trigger baseline was set up based on the fuel average of the diesel price for a year period in 2018/2019. According to Department of Energy’s U.S. Highway Diesel Ultra Low Sulfur Fuel Price Index value, average fuel price for the past 52 weeks (2020/2021) is $2.52.
Based on the adjusted trigger baseline, for the period beginning February 2, 2021, our Inland Fuel Surcharge (IFS/EFS) will remain at $0 USD.
Our Inland Fuel Surcharge is calculated based on the weekly average fuel price published by the U.S. Energy Information Administration (EIA). The average for the last quarter was $2.56 USD per gallon. This surcharge is calculated at $20 USD for every $0.10 USD incremental increase above the baseline fuel retail price of $2.52 USD per gallon.
The Inland Fuel Surcharge will not be applied should the quarterly average fuel retail price on the EIA website from the prior quarter be lower than $2.52 USD. When applicable, the Inland Fuel Surcharge will become effective the first day of each quarter: January 1st, April 1st, July 1st, and October 1st.
We will continue working beside you to find ways to keep you covered within the inland industry regulations, so your shipments continue to receive the care you expect. As your store door carrier, we will continue to actively monitor and provide timely updates on changes that may impact your supply chain.