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Kitty Hawk Cargo ("KHC") has developed its Ground shipment fuel surcharge index in an effort to provide our customers with a structure in which to anticipate potential changes in KHC's Ground shipment fuel surcharge based on changing diesel fuel market prices. KHC's Ground shipment fuel surcharge calculation is based on the diesel fuel prices published weekly by the U.S. Department of Energy ("DOE")1. The surcharge percentage is subject to periodic adjustment in accordance with the index below2,3.
KHC intends to adjust the surcharge on a monthly basis, based on the national average fuel price posted by the DOE on the last Monday of each month. The surcharge so established will be effective from the first Monday in the following month through the Sunday prior to the first Monday of the second following month.
|
DOE National Average |
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|
|
|
Diesel Fuel Price of: |
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Ground Shipment |
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|
At Least |
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But Less Than |
|
Fuel Surcharge |
|
|
$2.00 |
|
$2.05 |
|
12.0% |
|
|
$2.05 |
|
$2.10 |
|
12.5% |
|
|
$2.10 |
|
$2.15 |
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13.0% |
|
|
$2.15 |
|
$2.20 |
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13.5% |
|
|
$2.20 |
|
$2.25 |
|
14.0% |
|
|
$2.25 |
|
$2.30 |
|
14.5% |
|
|
$2.30 |
|
$2.35 |
|
15.0% |
|
|
$2.35 |
|
$2.40 |
|
15.5% |
|
|
$2.40 |
|
$2.45 |
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16.0% |
|
|
$2.45 |
|
$2.50 |
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16.5% |
|
|
$2.50 |
|
$2.55 |
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17.0% |
|
|
$2.55 |
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$2.60 |
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17.5% |
|
|
$2.60 |
|
$2.65 |
|
18.0% |
|
|
$2.65 |
|
$2.70 |
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18.5% |
|
|
$2.70 |
|
$2.75 |
|
19.0% |
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|
$2.75 |
|
$2.80 |
|
19.5% |
|
|
$2.80 |
|
$2.85 |
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20.0% |
|
|
$2.85 |
|
$2.90 |
|
20.5% |
|
|
$2.90 |
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$2.95 |
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21.0% |
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|
$2.95 |
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$3.00 |
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21.5% |
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NOTES:
1The prices published by the Energy Information Association of the DOE can be accessed at
http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp. KHC is not responsible for the information provided therein.
2 Fuel surcharge percentages and associated trigger points are subject to change without notice. See KHC Official Freight Tariff Manual for more details.
3 If the average of the national U.S. on-highway average price for a gallon of diesel fuel rises above $3.00, the surcharge continues to increase 0.5% for every $0.05 increase in fuel price or portion thereof. If the average of the national U.S. on-highway average price for a gallon of diesel fuel falls below $2.00, the surcharge continues to decrease 0.5% for every $0.05 decrease in fuel price or portion thereof.
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