Effective January 1, 2017 the province of Alberta will implement a Carbon Tax based on Green House gas emmissions from fossil fuel combustion. This tax will be in addition to current provincial and federal government fees that are currently included in the cost of diesel. This new tax will add 5.35 cents/litre to our fuel cost in 2017 and will increase to 8.03 cents/litre in 2018.
Canadian Freightways is a western Canadian LTL carrier with significant exposure to these increased costs in the province of Alberta. Our current rate agreement and fuel surcharge program with your company will not offset these costs. Due to this new government imposed Carbon Tax, Canadian Freightways is forced to pass this cost to our customers through an additional percentage based Carbon surcharge.
Effective January 15, 2017 this surcharge will only be assessed for shipments that origin or are destined to the province of Alberta. Like the British Columbia Carbon surcharge, this fee will be based on .7% of your LTL rate to a maximum of $5.75 per shipment.
If shipments move between the provinces of Alberta and British Columbia you will only see this fee once per invoice. At this time, these are the only two provinces that are applying this additional Carbon tax on every littre of fuel.
If you have any questions regarding the application of this fee, please contact your Account Executive.
For more information on this Carbon Tax please visit http://www.finance.alberta.ca/publications/tax_rebates/carbon-levy/overview.html#announcements
Director, Sales & Traffic