Fuel Surcharges & Your Chit Chats Canada Tracked Shipments

Learn about fuel surcharges and how the increased cost of fuel will have an impact on the postage prices for your Canada Tracked shipments moving forward.

Update May 2

Today, May 2, 2022, a new Canada Post fuel surcharge rate goes into effect for the month of May. Fuel surcharges are set by an independent third party in response to monthly changes in the costs of fuel.

As a result of the continued increases to fuel costs, Canada Post’s new fuel surcharge will rise 4.5% from the previous month’s rate. This means that postage prices for both Chit Chats Canada Tracked and Canada Post’s own parcel services will increase accordingly.

As mentioned previously, new fuel surcharge rates will go into effect on the first Monday of each month. Canada Post publishes the fuel surcharge rate for the following month one week in advance of the changes. To help prepare for these changes, we recommend visiting the Canada Post website.

Update Apr 27

As mentioned below, changes to fuel surcharges for Chit Chat Canada Tracked shipments will go into effect on the first Monday of each month. The next change is scheduled for Monday, May 2, 2022. For more details, please visit Canada Post’s website.

In the world of shipping, transportation can add up to be much of the cost of your shipment’s journey. In many cases, fuel is a requirement for transportation to even be possible. However, one particular challenge is that the price of fuel can change significantly over a short period of time. 

Due to the challenges posed by current global events we have seen gas prices and inflation increase dramatically in recent months. This can make it very challenging to keep shipping costs low and service levels consistent. So, to combat this, many in the industry are adopting higher fuel surcharges. This includes some of Chit Chats’ partner carriers.

What are fuel surcharges?

To account for the unpredictable nature of fuel costs, shipping companies will often charge special fees called fuel surcharges. How to calculate fuel surcharges can vary depending on the carrier; however, they are commonly based on the average price of fuel and are updated regularly, often weekly or monthly. For some carriers, you can find details about the current and previous surcharge amounts on their website.

What does this mean for my Canadian Shipments?

Although higher fuel surcharges is an industry-wide trend, it is a problem that impacts Canadian shipments in particular. This is because of the challenge that Canada’s low population density poses for transportation costs. As a result, Canada Post and others have had to significantly increase the fuel surcharges they apply to shipments.

Despite our best efforts to avoid changes to your postage rates, there will be an impact for your Canadian shipments.

Beginning the week of April 18, 2022, postage prices for our Chit Chats Canada Tracked service will reflect these significant changes to fuel surcharges. You can expect to see an increase of approximately 10% for your Canadian shipments.

It is unclear how long these surcharges will remain elevated but we want to prepare you for possible changes ahead. As the situation progresses around the globe, there may be further fluctuations in the cost of fuel. In turn, you may see minor adjustments to the rates for Chit Chats Canada Tracked, including decreases, each month. We recognize that this uncertainty can be extremely difficult for you to plan for. That’s why we will continue to do our best to minimize the disruptions to your shipping workflow ahead.

Planning for Changes Ahead

You can expect fluctuations (increases and decreases) month to month for our Chit Chats Canada Tracked pricing as Canada Post updates their fuel surcharges. To keep things as simple as possible, all updates to pricing will take place on the first Monday of the month. For an early overview of the changes, please refer to Canada Post’s website.

We apologize for the inconvenience that this may pose for your business. Please don’t hesitate to reach out to us for support or to answer any questions. We truly appreciate your feedback and thank you for your understanding.

The Chit Chats Team