Aloha Air Cargo - Fuel Surcharge

In an effort to maintain a sense of parity among our pricing, our intention is to ensure complete transparency in the way our fuel surcharge is calculated and applied. Aloha Air Cargo will be adjusting its fuel surcharge on a monthly basis. The adjustment will be derived from the Department of Energy Fuel Index, Energy Information Administration, Petroleum Navigator, for Kerosene-type Jet Fuel (Los Angeles).

We utilize the fuel index like this: March 2009 has been established as the base index (month), which had a fuel surcharge of $0.09 per pound of chargeable weight payload for all shipments. The current month's fuel index is divided by the base index to provide a fuel adjustment factor. This factor is then multiplied by the current month’s base fuel rate to determine the adjusted fuel rate, which in turn will become the base fuel rate for the next monthly period.

Example of How Fuel Surcharge is Calculated

The March, 2009 fuel index was $130.97, which is the base index rate, with the base fuel surcharge of $0.09. The April, 2009 fuel index was $141.69.

Adjustment Factor is 141.69 / 130.97 = 1.0819

Multiplying the Adjustment Factor by the base fuel surcharge rate, 1.0819 x $.09 = $.097 (note, the calculation will be rounded to two decimal places). Therefore, the new adjusted fuel rate would be $0.10.

Summary of example:

Advisement of Prior Notice

Aloha Air Cargo will provide a 30 day notification period for the adjusted fuel surcharge rates which will be sent to all existing customer accounts for the surcharge adjustment effective 30 days from the advice date. For example, a notification dated May 8, 2009 would have a corresponding effective date of the new fuel surcharge rate ($.10) on June 8, 2009. Should the effective date fall on a weekend, the actual effective date will be the next working day (M – F).

In the event the adjusted fuel index results in no increase or a decrease to the fuel surcharge, the existing base fuel index will be carried over to the next month. The base index will be in effect until such time the next Department of Energy Fuel Index for Kerosene-type Jet Fuel (Los Angeles) is published which causes an adjustment in the fuel surcharge.