16.03.2022

Frigoscandia introduces weekly adjustment of fuel surcharges as an effect of the development of fuel prices

Nobody has been able to avoid how the volatility in the fuel prices have exploded since Russia’s invasion of Ukraine, which has led to acute consequences for all companies in the transport industry.

Fuel has always fluctuated up and down seen over time and been managed through a monthly adjustment of fuel surcharges based on the official indexes of SCB/SÅ for domestic transport and the EU commission oil bulletin for international transport.

Index is a good model for compensating both rises and falls in the market however with a delay. The new situation with an extreme increase in the marked together with low margins and short times of payment for fuel will quickly render in a negative cash flow for all hauliers with a delayed index and thus the risk of bankruptcy.

To be able to handle the fast fluctuations and secure the important food transports we are forced to, with immediate effect, introduce a weekly adjustment of our fuel surcharge. Since SCB/SÅ index is not published weekly it will be based on the fuel companies daily and weekly list prices. These will be averaged into a weekly index. The model will be transparent and easy to follow.

We at Frigoscandia realize that changes in agreed administrative routines is not desirable but this is an absolute necessary measure. The only positive in these uncertain times is that a weekly adjustment also means that it will be a faster cost adjustment when and if the fuel price falls. Our intention is to return to monthly regulations as soon as the oilprice stabilizes.

In the event that you have questions or requests for clarifications please contact your commercial contact or use sales.frigo@frigoscandia.com and we will revert to you a.s.a.p