Why is there still a Fuel Surcharge when gas at the pump is so low?

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Recently, and rightly so,  some customers have been asking why we are still charging 8% FSC when the price at the pumps has been steadily dropping? Well, our FSC has been steadily dropping as well. It has decreased every month since July 2014. The FSC is due to be updated tomm, March 1st (we update it on the 1st of every month), and it looks like we will see a 6% FSC for shipments in March. The monthly FSC is always set at the average National price for the PREVIOUS month. The 6% for March shipments is based on the average from February 2016.

We use the same charts & method we have been using since fuel began to rise around 2005-2006, when we first implemented the fuel surcharge. This was intended to offset rising fuel costs over 65 cents per litre. We use a sliding scale that is updated on the 1st of each month based on the national average of the previous month. The average pricing data is sourced from The Kent Group’s website here: KENT GROUP. We add the national average of retail gasoline and retail diesel and average the two, then use the fuel surcharge charts to determine the current charge. Below 65 cents per litre the FSC is eliminated completely. The charts we use to calculate the surcharge can be viewed by clicking the PDFs below:

Fuel surcharge chart

Fuel surcharge chart below 95

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     The surcharge has been in steady decline since July 2014 when it was set at 14.5%. Since then we have decreased the fuel surcharge every month based on the national average to where it currently sits at 8%.  As explained above, it will be updated again on March 1st and currently the national average of retail gasoline/diesel will be 89.8 cents per litre, which would put the March surcharge at 6.5%.
  I have talked to customers over the past few years that said we are the only company they know of that updates and slides the surcharge monthly based on the fluctuating fuel prices.  If any customers have other questions or comments related to the fuel surcharge, please let us know!

Introducing the newest additions to our Fleet!

Hi ! Well, here we are at the end of February 2016, another winter nearing an end.  Kawartha Courier has started the year by updating our fleet , to better serve our customers! We are excited about adding these vans, complete with bold new graphics.

 

2016 Sprinter
2016 Mercedes Sprinter 2500 Extended EXTRA Long

 

2015 Sprinter
2015 Mercedes Sprinter 2500 Extended 4×4

 

 

We have replaced some of our full size cargo vans with larger Sprinter vans. We have added a 2015 Mercedes Sprinter 2500 EXT 4×4 and a 2016 Mercedes Sprinter 2500 Extra Long EXT. The cargo volume is quite amazing! We can now service shipments in these vans that we previously could only do in our Straight Truck.

As well, they are more efficient than our previous vans, and the 4×4 option on the 2015 will help us battle those snowy days . As our customers know, we forge ahead no matter the weather, so anything to help our drivers and your shipment to get to their destinations safely is a great tool! 4x4 emblem

In the pictures below you can see the difference in cargo volume between one of our previous cargo vans to the new Sprinter. Having more room means we can service more calls and larger items, this translates to better service for our customers to and from the GTA!

In our previous cargo vans we barely had 4' of height and only 10' to the rear seats.
In our previous cargo vans we barely had 4′ of height and only 10′ to the rear seats.
The Sprinters have over 72″ of height and 14′-15.5′ of length to the rear seats

Again, we cant wait to show the possibilities and availability we now have with these new capable units and look forward to them servicing your delivery needs for years to come. If you have any questions regarding capacities or anything else about our new Sprinter vans , please let us know! You can see them now on a road near you…..

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