Freight Shipping Services
E sales@sbtl.co.uk T (+44) 01202 593555 F (+44) 01202 593564

Breakdown of Fuel Surcharge Costs

In the last couple of years, our business has successfully weathered the difficulties within our industry that have led to an uplift in overall running and operating costs. Largely compensated by the lowered price of fuel, we have managed to absorb these additional costs.

One of the main effects ‘Brexit’ has had is the weakening of Sterling in comparison to currencies across the world. This has in turn resulted in the price of fuel rising by over 10 per cent in the last month alone.

With fuel representing almost a third of our operating expenses, the rate in which fuel prices are rising could become unsustainable for us as a business to continue absorbing. In order to protect our service levels and to continue delivering the standard of service that our customers deserve and expect, we will be introducing a monthly fuel surcharge mechanism from January 1st 2017.

We intend to base our surcharge on our average monthly fuel spend over a fixed calendar month, which will then determine the surcharge percentage for the following month. Our fuel rates are based on a bunker price of £0.90 pence per litre. Every £0.01 pence rise in the base cost will attract a 0.25% surcharge.

The breakdown of costs is covered in the chart below:

PPL % PPL % PPL %
£0.90 0.00% £0.95 1.25% £1.00 2.50%
£0.91 0.25% £0.96 1.50% £1.01 2.75%
£0.92 0.50% £0.97 1.75% £1.02 3.00%
£0.93 0.75% £0.98 2.00% £1.03 3.25%
£0.94 1.00% £0.99 2.25% £1.04 3.50%

All freight is carried under RHA Standard Terms and Conditions 2009 @ £1300 per tonne
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