FSC in air freight refers to a type of fuel surcharge, also known as fuel additional cost fee. It is a conventional fee in the international logistics and freight industry. FSC in air freight is an additional fee collected from the recipient by airlines, shipping companies, or road transport companies to compensate for additional fuel costs due to rising fuel prices.
This fee is determined based on the fluctuations of international oil prices and is usually adjusted monthly or quarterly. The actual amount of FSC in air freight varies depending on the actual freight distance, the weight of the goods, the mode of transport, and other factors. The fee ratio is very low, typically not exceeding 20% of the total freight cost.
What is FSC in Logistics and Shipping?
FSC full form stands for Fuel Surcharge. It is a fee assessed by carriers to account for the fluctuating price of fuel (oil). Because fuel prices can be volatile, FSC in logistics allows airlines, trucking companies, and shipping lines to adjust their pricing without changing their base freight rates.
If you are asking, "What is FSC charge?" or "What does FSC mean in shipping?", the answer is simple: it is a variable cost added to your freight bill to cover the rising cost of fuel.
FSC in air freight first appeared in 2004. At that time, it was a temporary fee imposed by airlines in response to a sudden rise in oil prices to cover increased costs. Initially a temporary measure, over time, it evolved into a regular charge.
FSC in air freight is widely used in international air, sea, and land freight. Airlines regularly announce changes in fuel surcharges based on oil price trends and list the proportion separately in the freight cost. Shipping companies usually calculate and collect fuel surcharges based on routes and sailing schedules. Road transport companies also calculate and collect fuel surcharges based on variables such as truck model, distance, and destination.
In any mode of freight, FSC in air freight is a very common component of freight costs. Therefore, shippers need to consider the impact of FSC in air freight on their costs when transporting goods in order to develop a more comprehensive logistics cost budget.
How is FSC Calculated in Air Freight?
Understanding how to calculate FSC is important for budgeting your shipments. The FSC rate is typically linked to the average market price of jet fuel.
In Air Freight: The FSC charge is usually calculated as a specific amount per kilogram (e.g., $0.50/kg) based on the "chargeable weight" of the shipment.
FSC vs. Base Rate: The FSC cost is separate from the base air freight rate.
Fluctuation: Major airlines (like Air China, Lufthansa, etc.) update their FSC fees regularly—often monthly or weekly—depending on the global oil index.
Example: If you have a 100kg shipment:
Base Freight: $3.00/kg
FSC Charge: $0.60/kg
SSC Charge: $0.15/kg
Total Cost = (3.00 + 0.60 + 0.15) x 100kg = $375.00.
The Difference Between FSC and SSC
You will often see FSC and SSC listed together on an invoice. It is crucial to know the difference:
FSC (Fuel Surcharge): Covers the cost of fuel. Variable and changes often.
SSC (Security Surcharge): Stands for Security Surcharge (sometimes called SCC charge or ISS). This covers the security measures required at airports, such as X-ray screening and 24-hour surveillance.
Unlike FSC costs, the SSC meaning relates to safety compliance. Both are standard surcharges in air freight and logistics.
FSC in Different Modes of Transport
While this guide focuses on FSC in air freight, the concept applies across the supply chain:
FSC in Trucking: Road transport companies apply a fuel surcharge based on diesel prices. The FSC trucking rates are often a percentage of the base haulage rate.
FSC in Shipping (Sea): Ocean carriers apply similar charges, sometimes referred to as BAF (Bunker Adjustment Factor), but "FSC" is also used in sea logistics.
FSC Courier: Express companies (like DHL/FedEx) also apply a dynamic fuel surcharge percentage to every shipment.
The Impact of FSC in Air Freight on Ordinary Passengers
So, does FSC in air freight make us spend more money? Actually, it doesn't. Because most countries require airlines to publish "inclusive prices," which include all mandatory taxes and fees. If there were no FSC in air freight, airlines might directly increase the base ticket price, and the final price wouldn't change. Airline pricing mainly depends on market demand, not the cost structure. Therefore, for most passengers, the presence or absence of the fuel surcharge is not important because what we see is the final total price.
Frequently Asked Questions about FSC Charges
Q: What is the FSC full form in logistics?
A: The FSC full form is Fuel Surcharge. It is a fee added to freight rates to offset fuel costs.
Q: Is the FSC rate fixed?
A: No. The FSC rate is variable. It rises and falls with the global cost of crude oil and jet fuel.
Q: What is SSC in shipping?
A: SSC stands for Security Surcharge. It is a fee for security screening and safety measures at cargo terminals.
Q: Does every shipment have an FSC fee?
A: Yes, almost all international air freight and trucking shipments will include an FSC fee unless you have a specifically negotiated "all-in" rate.
