The FAF is a variable surcharge applied to freight charges to account for fluctuations in fuel costs.
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, and Shown as a separate line item on invoices.
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, and Separate line item on every invoice.
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.