The Newark Group to Implement Fuel Sucharge on All Shipments
March 25, 2011 - The Newark Group said that its Paperboard Products division will implement a fuel surcharge effective with all shipments on or after
April 11, 2011.
The company cited the rapid escalation of diesel fuel prices as the primary factor for the surcharge.
In a written statement, The Newark group said, "This charge is calculated on a base cost of $3.14 per gallon which is the US Energy Information Administrationís average diesel price for the month of November 2010. These charges will cover the impact of the fuel cost increase throughout our supply chain.
The company informed customers that the surcharge will be applied as a flat rate based on the distance between its plant and a customer's dock.
- 0 to 24 miles $25 per shipment
- 25 to 74 miles $80 per shipment
- 75 to 124 miles $130 per shipment
- 125 to 174 miles $180 per shipment
- 175 to 224 miles $235 per shipment
- 225 miles or more $290 per shipment
Philip Jones, senior vice president, Converting Divisions, said, "We will review the surcharge numbers on a quarterly basis and adjustments will be made whenever
there is a substantial change in the price of diesel fuel."
SOURCE: The Newark Group