FAF

Chilled transport NZ

Fuel Adjustment Factor (FAF)

Current Diesel Price Manawatu Mobil: August - $1.547 July - FAF 5.50%

Fuel is a significant expense in any transport business with direct consequences for profitability & ongoing sustainability 
Fuel prices fluctuate significantly month to month (See Graph Below) so we need to have a mechanism that accounts for this. 
 There are two options:
  • Setting your base rates high enough to accommodate fluctuations
  • A fuel adjustment factor (FAF) applied on top of base rates that’s adjusted monthly to reflect the current fuel price 
The second option is fairest to the customer as they pay the extra when fuel prices increase & when they decrease your rates will lower accordingly.
Urgent Cool Logistics set our FAF based on the retail pump price of diesel on the last day of the month for the following month. The FAF table provides transparency as to the level of FAF each month according to the pump price.
We source the data for setting our FAF from the PriceWatch website using the Manawatu average Mobil price as a benchmark
‘PART OF THE NZ OWNED URGENT COURIERS GROUP’
'We use Urgent Cool to move our valuable products to supermarkets throughout the Mid & Lower North Island. We've always found them to provide a consistently reliable service & have done so for many years"
Bill
Morgan Laurenson
'Urgent Cool's attention to detail & response time to questions & requests is excellent Gropak have used the services of Urgent Cool extensively & found them to take great care & responsibility for our produce'
Andrea
Gropak
'We use Urgent Cool's services nightly & they are reliable & careful with our produce'
Gordon
Fresh Direct
'Come join the leading fast delivery in New Zealand "
%d bloggers like this: