The Newark Group to implement fuel sucharge on all shipments
Mar 25, 2011. The Newark Group's 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.
Mar 25, 2011. /Lesprom Network/. The Newark Group's 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, as PaperAge reported.
The Newark group said, "This charge is calculated on a base cost of $3.14 per gallon which is the US Energy Information Administration’s 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."
The Newark Group, founded in 1912, is an integrated global producer of 100% recycled paperboard and paperboard products with significant manufacturing and marketing operations in North America and Europe.