We would like to inform you that for the period beginning July 1st, 2023, our Inland Fuel Surcharge (IFS/EFS) for United States will be $0 USD. Inland Fuel Surcharge (IFS/EFS) for Canada will be $0 USD. Please note that for contracts beginning on or after January 1, 2023, and subject to Fuel Adjustment Factor (FAF), IFS/EFS will no longer apply for long term contracts. IFS/EFS remains valid for our short term rates and for contracts with effective start dates before January 1, 2023.
Our Inland Fuel Surcharge is calculated based on the weekly average fuel price published by the U.S. Energy Information Administration (EIA). Any $0.10 increase over the baseline fuel retail price of $2.52 USD per gallon will trigger a review of IFS/EFS. The calculation of cost will be based on fuel change published in EIA and corresponding Maersk fuel surcharge percentage. The On Highway Diesel for the prior 13-week period equates to an average price of USD $4.096 compared to a baseline of USD $2.52 USD. Since $4.096 is above our baseline of $2.52, the IFS/EFS will be $0. This reflects our commitment to utilize the IFS/EFS as means for cost recovery should the prices of diesel rise higher than forecasted rates.
Our Inland Fuel Surcharge is calculated based on the weekly average fuel price published by the Natural Resources Canada. Any CAD 0.10 increase over the baseline fuel retail price of CAD 1.27 per litre will trigger a review of IFS/EFS. The calculation of cost will be based on fuel change published in Natural Resources Canada and corresponding Maersk fuel surcharge percentage. The diesel fuel price for the prior 13-week period equates to an average price of CAD 1.637 per litre compared to a baseline of CAD 1.27. Based on the prior 13-week average of CAD 1.637, the IFS/EFS for Canada will be $0. This reflects our commitment to utilize the IFS/EFS as means for cost recovery should the prices of diesel rise higher than forecasted rates.
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.
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.com.
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