Fuel surcharges for international air express shipments have risen or fallen in different parts ofthe world this month against the background of a continuing drop in oil prices, CEP-Research
analysis shows.DHL, FedEx, UPS and TNT have further reduced their fuel surcharges for international airexpress shipments in Europe in November but increased the respective surcharges in the US after asharp drop in surcharges there last month. In Asia, FedEx and UPS also increased their surcharges,while DHL and TNT reduced them.
Oil prices are continuing to fall at present after reaching a peak of nearly $150 a barrel inJuly. Since then, the prices have slumped 57% and are down 32% from a year ago. Yesterday, oil fell5.8% to $63.91 a barrel in the USA, while in London today the Brent crude oil price fell below $60a barrel for the first time in 20 months.
The fuel surcharges in November reflect the oil price level two months ago. 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. This results in a two-month time lagbetween prices and surcharge level.
In the USA, FedEx Express increased its fuel surcharge for domestic, import and exportshipments by 1.5 percentage points from 27% in October to 28.5% for the 3-30 November period.Similarly, the UPS surcharge for US domestic and international air express shipments also rose inthe same way to 28.5% effective 3 November in comparison to 27% in October. DHL Express surchargesfor its US air express and international shipments also increased by 1.5 percentage points to 30.5%for the 2-29 November period compared to 29% last month.
In Europe, all four integrators have reduced their fuel surcharges. DHL has decreased its airexpress surcharge to 17% in November from 18.5% in October. TNT Express reduced its European fuelsurcharge to 19% for the 2-29 November period from the previous 20.5% while its separate UKsurcharge dropped from 12% in October to 10.5% this month. UPS also decreased its Europe fuelsurcharge for express and expedited shipments to 18% from 3 November onwards from the previouslevel of 19.5% in October. FedEx’s surcharge in Europe, Middle East, India and Africa (EMEA)slightly dropped by one percentage point from 18.5% in October to 17.5% this month.
In Asia Pacific, DHL’s fuel surcharge has dropped to 21.5% from 23.5% in October, while UPS’surcharge increased to 24.5% in November from 23.5% last month. TNT’s “rest of the world” surcharge(excluding the Americas) dropped 2% to 21% in November compared to 23% in October.
FedEx, whose surcharges vary by country in Asia, increased the export fuel surcharge inSingapore to 22.5% from the previous 21.5% and the import fuel surcharge rose to 24.5% from 23.5%.In Hong Kong, the FedEx fuel surcharge for exports and imports also increased to 22.5% in Novembercompared to 21.5% in October.
