DHL, FedEx, UPS and TNT have significantly reduced their fuel surcharges for international airexpress shipments around the world this month against a background of a continued sharp fall in oil
prices largely driven by the escalating global financial crisis, CEP-Research analysis shows.Oil prices have declined sharply from a peak of nearly $150 a barrel in July to below $85 abarrel this week on the various trading exchanges. In September, the integrator’s fuel surchargeswere largely stable and did not fully reflect the downward trend. This is because the four leadingexpress carriers calculate their surcharges based on indexes showing the previous month’s oil pricelevel and announce them in advance for the following month, thus resulting in a two-month time lagbetween prices and surcharge level.
In October, however, surcharges show a clearly recognisable drop around the globe, with thebiggest reductions in the USA, significant falls in Asia and moderate reductions in Europe.
In the USA, FedEx Express cut its fuel surcharge for domestic, import and export shipments by7.5 percentage points from 34.5% in September to 27% for the 6 October-2 November period.Similarly, UPS reduced its surcharge for US domestic and international air express shipments by 7.5percentage points to 27% effective 6 October in comparison to 34.5% in September. DHL Expresssurcharges for its US air express and international shipments sank by 7.5 percentage points to 29%for the 1 September – 4 October period compared to 36.5% last month.
In Europe, DHL has moderately decreased its air express surcharge to 18.5% in October from20.5% in September. TNT Express reduced its European fuel surcharge to 20.5% for the 29 September-2November period from the previous 23% while its separate UK surcharge dropped from 14.5% inSeptember to 12% this month. UPS moderately decreased its Europe fuel surcharge for express andexpedited shipments to 19.5% from 6 October onwards from the previous level of 21.5% in September.FedEx’s surcharge in Europe, Middle East, India and Africa (EMEA) slightly dropped from 20% inSeptember to 18.5% this month.
In Asia Pacific, DHL’s fuel surcharge has dropped to 23.5% from 27% in September, while UPS’surcharge dropped slightly more to 23.5% in October from 27.5% last month. TNT’s “rest of theworld” surcharge (excluding the Americas) dropped 4.5% to 23% in October compared to 27.5% inSeptember.
FedEx, whose surcharges vary by country in Asia, reduced the export fuel surcharge inSingapore to 21.5% from the previous 25.5% and the import fuel surcharge fell to 23.5% from 27.5%.In Hong Kong, the FedEx fuel surcharge for exports and imports dropped to 21.5% in October comparedto 25.5% in September.
