FSC in air freight refers to a type of fuel surcharge, also known as fuel additional cost fee. It is a conventional fee in the international logistics and freight industry. FSC in air freight is an additional fee collected from the recipient by airlines, shipping companies, or road transport companies to compensate for additional fuel costs due to rising fuel prices. This fee is determined based on the fluctuations of international oil prices and is usually adjusted monthly or quarterly. The actual amount of FSC in air freight varies depending on the actual freight distance, the weight of the goods, the mode of transport, and other factors. The fee ratio is very low, typically not exceeding 20% of the total freight cost.
The Origin of FSC in Air Freight
FSC in air freight first appeared in 2004. At that time, it was a temporary fee imposed by airlines in response to a sudden rise in oil prices to cover increased costs. Initially a temporary measure, over time, it evolved into a regular charge.
FSC in air freight is widely used in international air, sea, and land freight. Airlines regularly announce changes in fuel surcharges based on oil price trends and list the proportion separately in the freight cost. Shipping companies usually calculate and collect fuel surcharges based on routes and sailing schedules. Road transport companies also calculate and collect fuel surcharges based on variables such as truck model, distance, and destination. In any mode of freight, FSC in air freight is a very common component of freight costs. Therefore, shippers need to consider the impact of FSC in air freight on their costs when transporting goods in order to develop a more comprehensive logistics cost budget.
The Impact of FSC in Air Freight on Ordinary Passengers
So, does FSC in air freight make us spend more money? Actually, it doesn't. Because most countries require airlines to publish "inclusive prices," which include all mandatory taxes and fees. If there were no FSC in air freight, airlines might directly increase the base ticket price, and the final price wouldn't change. Airline pricing mainly depends on market demand, not the cost structure. Therefore, for most passengers, the presence or absence of the fuel surcharge is not important because what we see is the final total price.
