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Transportation Surcharges Canada
Sunbelt Rentals imposes a transportation surcharge that is comprised of one variable and one fixed component. The total transportation surcharge percentage will be modified, as needed, each month on the first billing day of the month based on the following inputs.
The variable component of the transportation surcharge is based on the Canadian Average Monthly Retail Diesel Fuel Prices reported by the Canadian government two months prior to the adjustment, not on Sunbelt Rentals’ actual fuel expenses. For example, the surcharge for May 2017 is based on the March 2017 monthly average. These average prices can be found at http://www.nrcan.gc.ca/energy/fuel-prices/4593.
The following Transportation Surcharge Matrix illustrates the transportation surcharge schedule:
Prices are in Canadian cents per Liter
At least:
But Less Than:
Surcharge:
Minimum:
55
65
1.0%
$1.00
65.01
75
1.5%
$1.50
75.01
85
2.0%
$2.00
85.01
95
2.5%
$2.50
95.01
105
3%
$3.00
105.01
115
3.5%
$3.50
115.01
125
4.0%
$4.00
125.01
135
4.5%
$4.50
135.01
145
5.0%
$5.00
145.01
155
5.5%
$5.50
155.01
165
6.0%
$6.00
165.01
175
6.5%
$6.50
175.01
7.0%
$7.00
The fixed component of the transportation surcharge is intended to defray delivery costs, including, but not limited to, Tier 4 engine compliance requirements, vehicle running costs, depreciation, etc. Currently, this fixed component is 6% or a minimum of $6.00 CAD until further notice.
As explained above, the total transportation surcharge percentage is based on the combination of the variable and fixed components. The applicable transportation surcharge percentage is then multiplied by the transportation rates (e.g., delivery and pickup charges) set forth in the contract. Transportation surcharge percentages and thresholds are subject to change without prior notice. If there are changes to the thresholds, the above information will be updated.
Sunbelt offers transportation services to its customers through knowledgeable professionals via a fleet of trucks and trailers that provide timely delivery of the wide variety of rental equipment that Sunbelt offers. This transportation surcharge is added to each transportation charge, for the transportation services requested by the customer. The transportation surcharge is NOT a government mandated tax or fee. The transportation surcharge is our charge intended to defray a wide range of transportation expenses (both direct and indirect), which are not always fully recovered by other transportation charges. While the transportation surcharge is intended to defray these expenses, it is not specifically designed to recover an exact percentage of the costs attributable to any particular transaction. This transportation surcharge is not placed in an escrow account; it becomes part of Sunbelt Rentals’ revenue and is used at our discretion.
Surcharge Calculation Example:
March 2017 average Diesel fuel price of 110.00 cents/liter makes the variable component of the surcharge 3.5% with a minimum of $3.50CAD. Combine this with the fixed component of 6% or minimum of $6.00CAD and the total surcharge on the invoice will be 9.5% or a minimum of $9.50CAD for the month of May 2017.
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