Most Australian ground transport operators/carriers levy fuel surcharges on shippers’ freight charges.
These controversial surcharges are largely misunderstood, with good reason: Most carriers do not differentiate between short- and long-haul service when providing fuel cost estimates as a percent of customers’ total freight costs. Instead, they provide a single fuel cost percent to measure cost movements from period to period.
The approach creates confusion and inaccuracies since:
- Heavy vehicle fuel consumption ranges widely, from approximately 25 to 40 litres per 100 kilometres of travelled, depending on vehicle carrying capacity, freight density and distance travelled.
- Fuel costs vary in the total cost of operating a heavy vehicle (typically, 15-20 percent of short-haul operators’ costs but about 50 percent of long-haul operators’).
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