Each logistic company charge a fuel surcharge for all shipments that they pick up and deliver to their clients. The fuel surcharge is an additional cost that is to be paid by the users. It is measured by different factors related to your shipment, including fuel charges for the entire journey, quantity of shipment, and destination.
In this blog, we will talk about the fuel surcharges india and how is it calculated by various logistics companies in India.
What is Fuel Surcharge?
Fuel Surcharge is an additional fee that is generally charged by different logistic carriers with respect to the basic shipping rates. Since it is subjected to constant fluctuations, this particular surcharge help various carriers cover fuel costs. It means that the shipping companies can easily compensate for the seasonal cost and regional variation of the fuel cost.
This surcharge asks customers to pay increased shipment costs during seasonal fuel price hikes, so that the transaction is beneficial to the users.
How is Fuel Surcharge India Calculated?
Shipping carriers charge for fuel as a different cost than their shipping services. But it’s not a constant rate. There are several factors that go into the fuel cost.
Here are the main factors that go into the final fuel cost on your invoice, and how it is calculated:
1. The Cost of Fuel
Based on the market price of fuel or the average industry pricing, carriers choose their fuel rate. This is done so that they won't lose money on shipments when fuel prices rise and that they might even make money if fuel prices fall.
Each carrier determines their base gasoline tariff in a somewhat different way. It's critical to comprehend the variations so you can choose the carrier who best meets your needs and avoid signing a contract that will end up costing more than it should.
2. Fuel Surcharges
Every carrier also includes a fuel fee in addition to the base fuel rate. The majority of services use this, which is charged as a percentage of the base fuel rate (in other cases it is a flat fee, like with DHL).
To calculate the fuel surcharge India cost, based on the chart above, take the percentage offered in line with the present base rate of fuel. For instance, if the base rate of fuel is ₹2.82, the fuel surcharge rate is 10.25%, and the actual cost of the fuel surcharge will be ₹0.29. That means ₹0.29 will be applied per shipment.
3. Additional Fuel Surcharges
In addition to the base cost and the initial fuel premium, certain services also impose a second fuel surcharge. These services, like the remote location surcharge, generally require extra gasoline to make the delivery or pickup.
Here, things become challenging because fuel surcharges are added on top of one another. Basic services like ground delivery are subject to the standard fuel surcharge (as described above). There will be an additional fuel surcharge applied if your shipments come under any additional service categories.
Conclusion
Go to the website of your preferred logistics partner. Generally, they will have surcharge data printed on their website. An easy Google search can move you to the fuel surcharge page if the logistics partner has one.
If you do not find authentic info on the website, call them. They will update you about the pricing details and the surcharges that will be required on your transport needs.
Movin is one of the premium B2B logistics companies in India that offers a standard and express delivery service for its B2B clients in India and abroad. Get in touch with Movin today.
