What is Temporary Service Continuity Surcharge (TSCS)?
The Temporary Service Continuity Surcharge (TSCS) was introduced in late 2016 as a mechanism for helping cover significantly increased operating expenses caused by unforeseen events, such as major earthquakes, that result in road closures and other restrictions to our delivery network.
We felt that adding a surcharge was a transparent method of sharing these unforeseen costs while providing the flexibility to adjust the figure accordingly based on conditions improving or worsening. It is a flat rate, which makes it easier for you to understand the cost impact on your business, as opposed to complex route-based permutations.
The TSCS only relates to domestic deliveries and is applied to delivery base rates, it is NOT added on top of other surcharges.
Why does a delay to one part of our network cause operating costs to increase throughout?
In order to deliver an item to any centre in New Zealand overnight, ALL the network components must operate to schedule. If one component of the network is shutdown then vehicles in or out of any hub can be affected also.
For example, if an aircraft from Christchurch to Palmerston North is delayed because a truck into the Christchurch hub is delayed, then all Linehaul out of Palmerston North to Napier, New Plymouth and Wellington would be delayed. The same would apply to flights into Auckland for Hamilton, Bay of Plenty and the far North.
Many of our customers rely on our overnight delivery ability, so when disruptions happen our top priority is to keep deliveries moving as quickly as possible. Doing so may require adding additional vans and trucks to our Linehaul network, and the drivers to operate them. More vehicles in our Linehaul network mean that there must be more people at either end to handle the freight they carry, requiring additional staff and new hours.