Fuel adjustment is a mechanism which enables a quick response to fluctuations in the market prices of diesel fuel. The mechanism protects our clients from constant changes in the rates for transport services provided by the logistics operator.
In all contracts concluded by Farmada Transport, the freight rates are calculated on the basis of a reference price of diesel fuel which is the average wholesale price of 1 m3 of diesel fuel at PKN Orlen (http://www.orlen.pl).
The reference price:
PLN 3523.00 per 1 m3 of diesel fuel (based on the prices in December 2010, and January and February 2011)
The price in December 2011: PLN 4330.60/m3
The current value of the fuel adjustment rate for domestic shipments:
Farmada Transport shall make an automatic freight rate adjustment if the average monthly wholesale diesel fuel price in the month preceding the month for which the rate is being calculated has changed by 5% or the multiple thereof (i.e. by 10%, 15% etc.) above or below the reference price. The freight rate specified in the contract shall be automatically adjusted (increased or decreased) by the fuel adjustment rate on the first day of the month – see Table. The fuel adjustment rate results from the share of the fuel cost in the overall cost of the services offered by Farmada Transport, and it may change along with changes of the cost structure.
Farmada Transport reserves the right to change the methodology of calculating the fuel adjustment rate, especially for the transport services which are based on solutions other than the standard domestic transport services.
