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Fuel Price Cuts

Dear Valued Customer,


As we are all aware, the price of fuel has dropped substantially over the past few months due to the falling price of Oil, in fact below the $50 per barrel mark in the past few days! This price is understood to continue to numbers as low as $20 per barrel if Opec do not cut production.

As such, and in line with our Fuel Surcharge policy, we will be implementing a negative fuel surcharge against all non-outsourced cartage services with immediate effect. We can do this simply on the basis that our current non-outsourced cartage prices were based on the prevailing fuel price as at 1st April 2014.

As for outsourced transport services that are mostly long-distance and container cartage services, we have approached our suppliers for the same level of commitment, and we await their response, that I must say is not as forthcoming as one would have hoped. It is true that a number of these services have pricing models that differ to ours and different circumstances, and a number of them may have rates that were only implemented at some later date during what we refer to as our “rate year”. We will continue to push for what we see is fair, but we can only pass decreases on in cases where we received them from our contractors.

The April 2015 cartage rate increases are expected to be somewhere between ZERO and SOFT if the current fuel price carries into mid-2015. You would also be seeing a positive effect coming through on the airline fuel surcharges (FSH) and the ocean freight bunkers (BAF).

Best Regards,


Andrew Ioannou

Export Manager