Freight Fuel Surcharge

May 12th, 2016 by Amanda Schumann

Can anyone tell me why all the freight companies – road freight and airlines – are still charging fuel surcharges all these years later?

It all started when fuel prices were really high, now oil prices are at record lows and that doesn’t always 100{25ff19fb4bbe50b2512a26092ffa8499fbe25baf0e752d653cb6adacb3479290} translate to diesel prices but I notice that airlines are stating that they are making record profits because of low fuel prices. Isn’t this illegal in Australia, it comes under the category of price fixing and collusion? It seems very opportunistic and what amazes me is every single freight company does it and no one is breaking rank on it.

Although having said that I have noticed that air freighting from places like India is a lot cheaper if you get your supplier to give you a price from the other end, rather than getting a price from Australia.
(Regarding paying too much from Australian freight operators) We were also getting overseas suppliers to quote ocean freight from their end but then we got caught as the ocean freight companies seem to have the ability to charge twice as much for port fees even though the port fees and charges relate to once the goods arrive in Australia but apparently the original shipper still has control of charging a higher than normal port fee. So this may be of interest to people to watch out for this trap as well.