We would like to inform you of the change to our Inland Fuel Surcharge (IFS/EFS) calculation. In order to align with Canada market, we will be separating our IFS/EFS trigger baseline for NAM to United States and Canada. Our IFS/EFS trigger baseline for United States will remain at $2.52. Effective November 25, 2021, the IFS/EFS trigger baseline for Canada will be updated from $2.52 to CAD 1.27. According to Natural Resources Canada Diesel Fuel Price Index, average fuel price for the past 52 weeks (2020/2021) is CAD 1.27.
Based on the adjusted trigger baseline for Canada, for the period beginning November 25, 2021, our Inland Fuel Surcharge (IFS/EFS) for Canada will remain at $0 USD. Inland Fuel Surcharge (IFS/EFS) for United States will remain at $40 USD for Q4 2021.
Surcharge Calculation
United States
Our Inland Fuel Surcharge is calculated based on the weekly average fuel price published by the U.S. Energy Information Administration (EIA). The average for the last quarter was $2.56 USD per gallon. This surcharge is calculated at $20 USD for every $0.10 USD incremental increase above the baseline fuel retail price of $2.52 USD per gallon.
Canada
Our Inland Fuel Surcharge is calculated based on the weekly average fuel price published by the Natural Resources Canada. The average for the last quarter was CAD 1.27 per litre. This surcharge is calculated at $10 USD for every CAD 0.10 incremental increase above the baseline fuel retail price of CAD 1.27 per litre.
Surcharge Applicability
The Inland Fuel Surcharge will not be applied should the quarterly average fuel retail price on the EIA website from the prior quarter be lower than $2.52 USD for United States; or Natural Resources Canada Diesel Fuel Price Index CAD 1.27 per litre for Canada. When applicable, the Inland Fuel Surcharge will become effective the first day of each quarter: January 1st, April 1st, July 1st, and October 1st.
Inland Regulations
We will continue working beside you to find ways to keep you covered within the inland industry regulations, so your shipments continue to receive the care you expect. As your store door carrier, we will continue to actively monitor and provide timely updates on changes that may impact your supply chain.
We would like to take this opportunity to say thank you for doing business with us. If you have any questions, please feel free to reach out to your local sales or customer service representative. You will find contact details of our local offices on Maersk website.
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