Press Release
Face Recommends Best Practice Guidelines for Fuel Costs
23 May 2000
The Forum for Air Cargo in Europe has agreed a common set of recommended air cargo industry best practice principles to deal with escalating aviation fuel costs. The Forum for Air Cargo includes airlines, freight forwarders, shippers and their representative organisations. FACE members have worked together to bring new levels of transparency and trust to the controversial issue of rising fuel costs and have recommended new ways of dealing with unforeseeable increases and decreases in fuel costs.
The best practice principles have been established in recognition of wide spread industry recognition that blanket surcharges are an inappropriate way of dealing with sudden increases in costs.
Five basic principles have been agreed between shippers, freight forwarders and airlines. They include transparency, negotiability, one single aviation fuel index to be agreed by the contractual parties, agreed lead-times and agreement on implementation.
Based on the principles outlined in the FACE best practice recommendation customers and suppliers are encouraged to agree mutually acceptable solutions to deal with sudden rises or decreases in fuel costs. "Over the past two years the Forum for Air Cargo in Europe has changed the whole atmosphere of the air cargo industry", said Chris Welsh. " Carriers , forwarders and shippers are working side by side on a wide range of joint initiatives, including key performance indicators and other measures to improve standards in the industry. This is another of example of the air cargo industry working constructively together on common problems."
The FACE Principles for Fuel Surcharges - Good Business Practice document is available online.
For further information contact: Nicolette van der Jagt, Secretary General of the ESC - Brussels 00 322 230 2113
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