FAF — Fuel Adjustment Factor

FUEL ADJUSTMENT FACTOR

What is FAF?

FAF stands for Fuel Adjustment Factor — a fuel surcharge applied to freight charges to account for fluctuating fuel costs. Rather than embedding volatile fuel prices into base freight rates, the FAF provides a transparent, variable component that moves with the market.

The FAF is an industry-standard practice used by logistics providers worldwide. It ensures pricing remains fair for both customers and carriers by reflecting actual fuel costs at the time of each shipment.

Variable surcharge applied to freight charges

Reflects real-world fuel cost fluctuations

Industry-standard across NZ and global logistics

Shown as a separate line item on invoices

TRANSPARENT METHODOLOGY

How FAF is Calculated

The FAF is reviewed monthly based on the Ministry of Business, Innovation and Employment (MBIE) fuel price index. This ensures the surcharge accurately reflects current market conditions rather than relying on estimates or fixed rates.

The FAF is applied as a percentage of your base freight charges. Because it adjusts in line with real fuel prices, you'll never be overcharged when fuel drops or caught off-guard when prices rise.

Monthly review cycle based on MBIE fuel price data

Transparent methodology tied to published indices

Applied as a percentage of freight charges

Separate line item on every invoice

CURRENT RATE

Current FAF Rate

The FAF rate is updated as fuel prices change and applies to all domestic freight charges. The rate shown on your invoices reflects the FAF in effect at the time of consignment.

For the current FAF rate applicable to your account, please contact our team directly. Your account manager can provide the latest rate information and explain how it applies to your specific freight services.

Contact Us for Current Rate Call 0800 354 929

Fuel Adjustment Factor (FAF)

What is FAF?

How FAF is Calculated

Current FAF Rate

Questions about FAF or pricing?