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The dramatic increase and fluctuation of both local and international fuel prices has caused the jet fuel price to rise by over 90%. As a consequence, the components of cost for many airlines have increased exponentially. The recovery of this cost has been through surcharges passed on by the airline industry to forwarders and couriers alike, currently around 8% to 12% in most cases.
Borntosend has tried to absorb much of these costs, but the current levels are untenable and have rapidly become a significant cost to our business. We therefore have no option but to align ourselves with what is currently standard industry practice and to implement a variable surcharge element to our costing. This is based on the monthly average spot prices for kerosene/jet fuel (Rotterdam ARA Index) as published by the US Department of Energy, and should this index fluctuate either up or down, the rate levied will be adjusted accordingly. Prices displayed in this index are expressed in (USD) cents per US gallon.
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