In mid-March, when diesel prices went up to S$2.90, Haulio introduced an Emergency Fuel Surcharge (EFS) at S$15 per container to balance the cost distribution between our procurers and hauliers.
Implementing the static EFS is also not an ideal approach as it came as an abrupt increase in prices for our procurers. This provided them little lead time to react to the change.
As such, we will be introducing the Variable Fuel Surcharge (VFS) to help our customers gain clarity on future fuel surcharge rates, even if it does not yet apply today. The VFS will be calculated based on the prevailing commercial diesel prices.
Conversely, the implementation of the VFS shows Haulio’s commitment to our haulier partners, to pay them a fair price for taking trucking jobs through Haulio especially in today’s volatile diesel environment.
Our blogpost on Additional Fuel Cost Calculator (Singapore) can help you understand how to calculate the additional fuel costs for a typical container haulage job to anywhere in Singapore, and why a VFS is necessary.
The VFS will be implemented from 20 April 2022, where it will be charged to our procurer partners and passed on to our haulier partners.
The figure below states the Haulio VFS Price Card with effect from 20 April 2022.
The additional fuel cost is compared against our average trucking fees for these 3 main categories: One-way trips, Jurong area and Out-of-Jurong (OOJ) trips. The respective percentages in the VFS Price Card are derived to sufficiently cover the additional fuel cost for each trucking job from our platform.
Although total trucking rates may not represent the exact distance travelled and therefore the exact additional fuel cost, the VFS is derived from data collected from more than 37,000 TEUs transacted on Haulio’s platform, to balance out the costs within the different categories.
Following the industry, we are maintaining a minimum VFS of S$15 per container trucking trip to help our truckers cope with the rising operating costs due to fuel prices fluctuations. However, once the incremental fuel cost exceeds S$15, the VFS percentage will set in, and the VFS imposed would be a percentage of the trucking fee for the procurers.
The VFS applied for each week will be the average commercial fuel price1 two weeks prior to the truck-in date. The Fuel Price to be applied will refresh on a weekly basis every Monday.
1 Gathered from SPC, Caltex and Shell petrol stations
Based on the average fuel price derived, we will follow the VFS Price Card in setting the VFS for the trucking period.
We hope that this will make the surcharge more manageable for our procurers by publishing the VFS rates upfront instead of adjusting the fixed surcharge amount on a regular basis. For our hauliers, we hope this will also provide some assurance that we are taking a pro-active approach in paying them a fair price for the trucking jobs they take on our platform.
We will continue to monitor and review the situation to better address the volatile situation.
The VFS rates will follow the table below:
|Applied Week||Weekly Average Fuel Price||Source Week|
|20 Apr – 24 Apr||S$2.76||4 Apr – 10 Apr|
|25 Apr – 1 May||S$2.78||11 Apr – 17 Apr|
|2 May – 8 May||S$2.83||18 Apr – 24 Apr|
|9 May – 15 May||S$2.87||25 Apr – 1 May|
|16 May – 22 May||S$2.95||2 May – 8 May|
|23 May – 29 May||S$3.03||9 May – 15 May|
|30 May – 5 Jun||S$3.02||16 May – 22 May|
|6 Jun – 12 Jun||S$3.02||23 May – 29 May|
|13 Jun – 19 Jun||S$3.05||30 May – 5 Jun|
|20 Jun – 26 Jun||S$3.10||6 Jun – 12 Jun|
|27 Jun – 3 Jul||S$3.15||13 Jun – 19 Jun|
|4 Jul – 10 Jul||S$3.16||20 Jun – 26 Jun|
|11 Jul – 17 Jul||S$3.16||27 Jun – 3 Jul|
|18 Jul – 24 Jul||S$3.07||4 Jul – 10 Jul|
|25 Jul – 31 Jul||S$3.00||11 Jul – 17 Jul|
|1 Aug – 7 Aug||S$2.95||18 Jul – 24 Jul|
|8 Aug – 14 Aug||S$2.92||25 Jul – 31 Jul|
|15 Aug – 21 Aug||S$2.92||1 Aug – 7 Aug|
|22 Aug – 28 Aug||S$2.86||8 Aug – 14 Aug|
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