CargoWise ERP Glossary - Key Terms & FAQs

Our CargoWise ERP Glossary Terms provide clear, concise definitions of key terms used in CargoWise, helping users navigate the system with confidence. Along with these definitions, we've included in-depth FAQs to clarify complex concepts, ensuring you get the most out of your CargoWise solutions.

Kerosene-Based Fuel Charges

Last updated: July 23, 2025
Logistics CargoWise
K

Kerosene-Based Fuel Charges are surcharges added to air freight shipments to account for changes in the price of aviation fuel, which is predominantly generated from refined kerosene. These charges assist air carriers in managing fuel cost volatility without having to regularly modify base freight prices. Because fuel accounts for a large amount of air transport operational costs, carriers implement this surcharge as a variable fee that can be adjusted regularly depending on worldwide fuel price indexes. It guarantees that airlines remain financially viable while providing stable time and structures to freight forwarders and shippers.

Kerosene-dependent fuel Charges are configurable in CargoWise’s grading and invoicing modules, allowing forwarders to automate the imposition of fuel surcharges depending on aircraft schedules or fuel price benchmarks. These charges are often stated individually on quotations and invoices to promote transparency and assist logistics providers in appropriately passing on costs to clients. CargoWise’s dynamic management of fuel-related fees promotes profitability, carrier agreement compliance, and more prompt quotation in a competitive, fast-paced air freight environment.

Frequently Asked Questions

Why do air carriers levy kerosene-based fuel surcharges?

Because gasoline is a major operating cost, this surcharge helps carriers respond to price changes while maintaining core freight rates, ensuring cost recovery.

How are these charges computed?

They are frequently indexed to aviation fuel prices published by industry sources and differ by route, weight, and carrier-specific policies.

Does CargoWise offer automatic fuel surcharge updates?

Yes, CargoWise allows you to set up fuel surcharge tables related to carriers and areas, which automates fee calculation during quoting and billing.

Can shippers reduce or avoid fuel surcharges?

Fuel charges are normally non-negotiable and consistent throughout routes; however, certain high-volume shippers may negotiate limitations or stabilizing clauses in contracts.

Gasoline surcharge taxed or regulated?

In some regions, fuel surcharges may be subject to local tax regulations or aviation authority oversight, which CargoWise can handle through tax rule configurations.