Definition About the Air freight Fuel Surcharge rates

Definition About the Air freight Fuel Surcharge for International Courier

Aero fuel Surcharge is the extra amount/fees charged by airlines other than the Airline Fare to balance the fuel cost fluctuation. A fuel Surcharge is an additional charge which goes with the freight rate that helps to cover the fuel price for a specific shipment. It can change and go up drastically when the fuel price goes up, and at the same time, it can come down.

What is the purpose of a Fuel Surcharge?

The purpose of the fuel surcharge is to give a fair rate to the customers as the fuel cost keeps fluctuating in nature which results in the fluctuation of the net transport cost. This fuel surcharge is calculated in a manner, that there is fair clarification given which gives the customer a proper understanding of the process.

How is Aero Fuel Surcharge Calculated?

Managing your expenses is the priority of every business as it decides your profit and loss. In the transportation field, fuel is the most significant expense, and it is to be maintained. Fuel is the thing whose cost fluctuates on daily basis for political and manufacturing reasons. There is no single process for calculating the Percentage or amount of Fuel Surcharge. It is calculated differently because of the individual carrier’s fuel surcharge policy. Let’s see some of the common steps:

Step: 1
Knowledge of the Current Fuel Price

Knowledge of the price of fuel is the most important thing to do. Check the price on the EIA website as they update the fuel price based on fuel type and location like city and state. Also, this platform gives you access to the past numbers of the fuel. There are following two numbers of the fuel that is the Fuel base price and the Actual fuel price. # Fuel Base Price- Fuel Base price is the price carrier companies’ mention to clients at the time of booking. Either the price is the current price or the Standard price. The current Base price is the price that is commonly used when the calculation is done when there is a booking. The calculation is made based on the booking date’s fuel price. The standard price is the price which is the standard designed by the company for the calculation of the fuel. # Actual Fuel price- It is the actual price of the fuel you fill up your vehicle’s tank during delivery.

Step: 2
Consumption per mile
The Knowledge of the fuel price is not the only way, the other is to check the consumption of fuel per mile of the vehicle. The easy way to calculate the Consumption per mile is to divide the number of miles covered by the quantity of fuel you put into your tank.

Step: 3
Calculating Fuel per mile
After researching the cost of the fuel and the consumption per mile, you should calculate the cost of the fuel per mile.

Step: 4
Fuel for the entire trip
Once you calculate the fuel used per mile, you come to the end where you can calculate the actual fees for the trip. You need to multiply the distance by fuel per mile.


When there is a trip for miles and miles of distance and there is a need for refueling, then the above method doesn’t work. Here the percentage-based method is used where the standard price is used which is way simple and streamlined. Where there is a fixed percentage amount id set up which is the standard rate.

Fuel Surcharge Waiver

Fuel Surcharge Waiver is the facility provided by many financial institutions wherein the institutes with the help of credit cards provide the wave-off facility where the percentage of the amount is waived off on the net amount of the cost. For instance, Standard Chartered Bank is an international bank that provides an Rs.300 fuel surcharge waiver on their Super Value Titanium Credit Card on monthly basis.

International courier in Chennai

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