Since early last year, the major water carriers serving Alaska have initiated reductions of their fuel surcharge by transferring the fuel decrease into their base water transportation costs. While this “transfer” of costs will have no effect on the net costs to our customers, it does present the need to communicate effectively on this matter.
Matson announced last week they would be lowering their Fuel Surcharge by one half of its existing level, and increasing its published ocean rates to offset the difference. TOTE Maritime Alaska implemented the same action last year. Again, there is no net effect on end costs.
As a result of the adjustment announcement by Matson last week, effective May 1, 2016 American Fast Freight (AFF) will align our Alaska ocean fuel surcharge assessment to that of the two ocean carriers by reducing the ocean fuel surcharge by half and increasing the base charges for water transportation to all of our customers ensuring the net costs remain the same.
Our teams here at AFF will be working to transition all current customer agreements, contracts, rate schedules, etc., to adopt these changes in the coming weeks. We will also review any further opportunities which may exist to better simplify and automate the administrative process between our companies. Your AFF Transportation Consultant will be contacting you soon to implement these changes and answer any questions you may have.
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