Additional surcharges fuelling unnecessary courier costs

Opposition Labour MPs lost a House of Commons vote earlier this week in a bid to postpone a 3p rise in duty planned for January until April at the earliest, after the Government hinted it could delay the hike again in Chancellor George Osborne’s autumn statement next month. But Derek Bennion, Director of Shrewsbury same day delivery specialist Dex’s Midnight Runners (DMR), has warned fuel surcharges levied by courier companies could actually be a bigger issue for local businesses, one that is unnecessarily hitting them in the pocket.

“Many couriers and hauliers impose additional fuel surcharges of anything from 7-15% as a way to protect themselves against sudden jumps in the price of petrol and diesel,” Derek explained. “Conversely, when the price at the pumps falls, so in theory should this surcharge, but in reality this isn’t often the case, meaning customers can end up paying over the odds.

“Surcharging has become something of an accepted ‘norm’ in the transport industry over the past couple of years, particularly when the price of fuel rocketed between March 2010 and 2011. But over the past couple of months, when fuel prices have actually gone down by quite a significant amount per litre, it’s evident that many companies haven’t reduced the surcharge accordingly, leaving customers to, in effect, pay much higher prices than they really should.”

Derek believes the issue of additional fuel surcharges is particularly pressing for businesses that rely on van operators rather than hauliers. “Courier vans can get anything between six and eight miles per litre, compared to a truck, which in many circumstances can only get two miles per litre. Due to this disparity, hauliers are obviously affected more by any increase in fuel costs. But this isn’t stopping van couriers from imposing extra surcharges on top of their standard costs.

“While prices at the pumps have remained fairly stable over recent weeks, supply issues in Norway and the ongoing uncertainty in the Middle East mean that increases are always on the horizon. That’s why it’s crucial couriers are transparent with their pricing, with any surcharges they impose reflecting both increases and decreases in costs. Businesses should also be aware of the situation and clarify with their couriers any extra charges that might be being passed on to them,” Derek concluded.

The 3p increase in fuel duty had been scheduled to be introduced in August, but the Chancellor postponed the move for five months back in June, claiming that the revenue lost would be covered by larger than forecast savings in departmental budgets.