Interlink reduces fuel surcharge. Anyone else?
Earlier this month we noted the falling price of vehicle fuel in Britian, driven by a global reduction in crude oil prices.
In the article we went on to say that with that fall in prices, a commensurate reduction in courier fuel surcharges should surely follow. You had lots to say about that. Check out the comments.
We’re pleased to report today, as pointed out by Andy on the previous article, that as of the 19th January (next Monday), Interlink will be reducing their fuel surcharge from 7.75% to 6.8%. They have made this announcement with little fanfare and no details here on their website.
This is obviously good news and every price cut is a welcome price cut and those pennies can add up.
But the question remains: will other courier and carriers follow suit and reduce their fuel surcharges?
Have you heard anything on the grapevine that other Tamebay readers should know about?
DPD, part of the same Geopost group as Interlink, will be doing the same
Nice of them to let us know, but only reduced by less than 1%….from memory the last time it went up was more than that and the reduction in the fuel price has been huge!
The fuel surcharge %s have been declining since November, but most couriers are either on a 2 month or 1 month lag behind the actual fuel prices, so significant surcharge decreases will only be visible in February / March
Here’s a summary for those that are interested.
Fedex, DHL, UPS, – Fuel is pegged to the price that is 2 months ago and the rates change at the beginning of the month. Price is either EU diesel price or US east coast jet fuel
Fedex – Nov 16% Dec 15% Jan 14.5% forecast for Feb 12%
DHL Express services– Nov 16% Dec 15% Jan 14.5%
DHL Region EBD services– Nov 8.5% , Dec 8% , Jan 7.5%
UPS – Express – Nov 15% , Dec 13% , Jan 11.5%
UPS – Standard – Nov 8.5% , Dec 8% , Jan 7.5%
DPD (and Interlink) – Current UK fuel surcharge rate of 7.75% will be held until Monday 19 January, where it will then change to 6.8%. not sure what this is pegging to but most likely EU diesel fuel.
TNT – unlike other couriers, fuel surcharge is pegged to the Brent crude oil prices with one month lag so there should be a more immediate decrease in the surcharge in February.
UK and Ireland Express Services (National) : Nov 7.0% Dec 6.5% Jan 6.0%
UK and Ireland Economy Express (Europe) : Nov 10.0% Dec 9% Jan 9.0%
UK and Ireland Economy Express – Rest of World/UK & Ireland Express : Nov 19.0% Dec 17% Jan 16.%
Yodel – based on the EU diesel price with 1 month lag– the surcharge % depends on the length of contract. For very new customers, the surcharge is now 5.5% and will decrease slightly.
UK Mail / Business Post / I-post whatever they’re called these days
No change from December to January, but the level is very low, only 1.7%
Can’t find any info on Hermes
Royal Mails 3% still compares very well.
We’re paying £5.11 inc fuel for a parcel up to 30kg with interlink. Around 100 a day. Anyone else care to share their rates?
£6.99 incl fuel, although only sending about 3-5 a day and weight only up to 10kg.
I think we are missing the point that fuel has been falling for several months, if not most of last year. It has only been recently that the surcharge has started to drop. Also there is never a months or weeks delay in putting up when fuel prices suddenly jumped up!
With regards to Royal Mail, the 3% was put in place when fuel was almost at it’s highest price, if that’s the case then they should also be cutting the 3%.
Frankly a fuel surcharge is a joke, if fees went up on ebay 5% could we add a 5% surcharge to our prices, no we would have to increase our prices or find savings elsewhere.
Interlink have only dropped 0.95%, this is not great in light of the rate at which they piled it on when fuel was climbing.
Let’s be honest, all businesses would do it given the chance, must have been a nice earner for them over the years.
Interlink are VERY proactive on Twitter if anyone cares to raise this point with them there: