TWC Fuel Surcharge
In a market dominated by rising fuel costs TWC have endeavoured to protect clients from the financial consequences of monthly if not weekly fluctuations in the fuel surcharges levied by airlines.
One airline has levied multiple fuel surcharge increases in the last 2 years. The surcharge indexed to 100 in December 2003 now stands at 378, over 24 months this represents an increase in costs to TWC of 278%
All other major airlines have mirrored this approach to fuel surcharge increases causing a huge rise in TWC's core costs.
TWC has been working hard at streamlining its own fixed costs and adopting environmentally policies to avoid passing any variable cost increases to its customer base. An example of this is the introduction of LPG vehicles to the TWC fleet. Phase II of the conversion to a completely LPG fleet takes place in Qtr 3 2007.
The rising cost of fuel or the opportunist approach to it adopted by massive global entities is not exclusive to the express courier market, a picture of ever increasing costs is visible across a range of commercial sectors.
Airline A has raised passenger ticket fuel surcharges from £2.50 to £6.00
Airline B is raising its fuel surcharge on Trans-Atlantic tickets from £60 to £70
One Utility company announced that retail prices are increasing by 14%
City Centre Congestion Charges have also been raised. In July 2005 the London congestion charge was raised by 60% while in February 2007 the West London Extension is to come into force. This adds to the impact as TWC's main focus is on clients located within the Central London Congestion Charging area.
TWC are no longer in a position to be able to absorb these huge increases in costs without a small contribution form clients. To this end TWC will be introducing a variable fuel surcharge system effective from 1st June 2006. The surcharge, introduced at 5%, which is well below the industry average & at the bottom of the lower quartile, will fluctuate as set out in the TWC Fuel Surcharge table published on this web site. This surcharge will be applied to all consignments & appear as an additional item on your invoice.
A detailed comparison of industry tariff trends shows Fuel Surcharge rates at between 9 & 12.5% across the London market place. TWC feel that the introduction of a 5% fuel surcharge at this time keeps us well below the market average & continues to offer clients comparatively better buyer value than our competitors.
In summary we believe we continue to offer a quality product at a price which we have defended against increasing for a number of years. We are only now finally having to address our vastly increased costs by passing on a subsidised Fuel Surcharge to our clients.
