Scandinavian Express Fuel Surcharge (SEFS) is updated weekly based on: Lotos whosale rates
SEFS 17-23.05.2022: 47,73%
According to market standards, Scandinavian Express has introduced a fuel surcharge system to the billings, which automatically takes into account fluctuations in fuel prices and bears reference only to the cost of fuel in the whole freight rate - based on the assumptions:
- current rate: LOTOS wholesale diesel price per day
- reference rate: LOTOS wholesale diesel price for 05.05.2020 (2,952PLN)
- fuel share in logistic costs: 38%
- calculation formula: percentage change of current rate in relation to reference rate * fuel share in logistic costs
The constant fluctuations in fuel prices is a dilemma concerning all of today's global economy, with particular emphasis on the logistics industry and its considerable consumption of energy. The question arose of how to account for continuous changes in fuel prices in the calculations of services to keep the attractiveness of our offer as well as the clarity and ease of billing.
The answer to the problem is a fuel surcharge, which is a mechanism allowing an automatic reaction to the changes in the prices of diesel which is independent of the logistics operator.
Fuel prices are based on the LOTOS Group wholesale prices, so that additional margins for retail stations and the regional demand dynamics do not affect the billings.
Scandinavian Express Fuel Surcharge (SEFS):
- helps to avoid frequent updates of service price lists and calculations, automatically taking any changes in fuel price into account, depending on the market price level, the surcharge may even fall to the base value
- extracts the cost component which is independent of the logistics operator
- updates the rates on the basis of real economic conditions and changes in energy prices, not speculation
- stabilizes and organizes the conditions of long-term cooperation - regardless of fluctuations in the fuel market
Detailed information in this matter provides Sales Team of Scandinavian Express.