November 14th,
2008
Dear UNFI
Customer:
Over the past 6
months we have all seen unprecedented volatility
in fuel prices. This past summer we saw fuel
prices soar to all time highs, and over the past
three months prices have been declining.
In 2008 we
experienced 23 weeks with diesel prices above
$4.00. Thankfully the diesel price today is $.48
cents less than one year ago, and is currently
at a 14 month low.
While we are all
very pleased to see these price reductions we
still remain above the threshold which initiated
the UNFI fuel surcharge back in 2005. As
outlined in the chart below UNFI initiates a
fuel surcharge when the national diesel price
goes above $2.50.
In an effort to
ease the volatility for you and UNFI in this up
and down market, we believe it is more equitable
to convert to a monthly fuel surcharge review
program, effective December 1st.
Although our next
scheduled program change is scheduled for
December 1st, we recognize that
diesel prices have fallen sharply. Therefore, we
are pleased to inform you that we will be
reducing our surcharge ahead of schedule.
Effective Monday
November 17th we will be reducing the
fuel surcharge to $20.
The Price per
Gallon for setting the Fuel Surcharge will be
determined monthly using the U.S. Weekly average
from the U.S. Department of Energy’s Weekly
Retail On-Highway Diesel Prices report (http://www.tonto.eia.doe.gov/oog/info/wohdp/diesel.asp).
The monthly Price
per Gallon will be calculated as follows: the
monthly sum of the U.S. weekly average prices
divided by number of weeks in the calendar
month, rounded to 2 decimal places using
standard rounding
One Fuel Surcharge
per delivery will be applied to the customer
invoice. The Surcharge amount will be set
according to the table below.
|
Cost Per
Gallon |
Up to
$2.49 |
$2.50-$2.74 |
$2.75-$2.99 |
$3.00-$3.24 |
$3.25-$3.49 |
$3.50-$3.74 |
$3.75-$3.99 |
$4.00-$4.24 |
$4.25-$4.49 |
$4.50-$4.74 |
$4.75-$4.99 |
|
Cost Per
Delivery |
$00.0 |
$10.00 |
$15.00 |
$20.00 |
$25.00 |
$30.00 |
$35.00 |
$40.00 |
$45.00 |
$50.00 |
$55.00 |
Your business with
UNFI is greatly valued, and we appreciate your
continued partnership.
Best Regards,
Michael Beaudry
President, Eastern Region
