Fuel surcharges for international air express shipments again rose in July after slight increasesin June and May in response to a continued rise in oil prices in recent months, CEP-Research
analysis shows. However, energy prices are now showing signs of a retreat after rising 41% in thesecond quarter, which ended on Tuesday.In July, all regions have showed a moderate increase in air express fuel surchargescontinuing the upward trend in June and May.
Yesterday, oil prices fell to a five-week low under $67 a barrel following the US governmentreport that job losses surged to 467,000 in June. The larger-than-expected figure pushed theunemployment rate to a new 26-year high of 9.5% dampening hopes for an early recovery fromrecession, US media reported. This resulted in oil prices falling to $66.62 on the New YorkMercantile Exchange while in London the Brent crude oil price also fell to $66.92.
Oil prices have doubled since March as investors poured money into commodities like oil as ahedge against inflation, and foreign traders had more buying power as the dollar weakened.
The air express fuel surcharges for July reflect the oil price level two months ago. The fourleading express carriers calculate their surcharges based on indexes showing the previous month’soil price level and announce them in advance for the following month. This results in a two-monthtime lag between prices and the surcharge level.
In the USA, FedEx Express, UPS and DHL have increased their July 2009 fuel surcharges fordomestic and international air express shipments to 2.5% from 1% in June after the two-month cut tozero in April and May.
In Europe, all four integrators have further increased their surcharges. DHL surcharges rosefrom 9% in June to 9.5% for the period 5 July – 1 August. Similarly, FedEx surcharges went up to10% in July from 9.5% last month. UPS also raised its fuel surcharge to 10.5% in July from 10% inJune while TNT Express increased its European surcharge from 12.5% in June to 14% in July. Itsseparate UK surcharge also increased to 7% in July from 6.5% in June.
Showing a similar trend as in Europe, air express surcharges in Asia showed a moderateincrease. The DHL surcharge increased to 11.5% in July from 10.5% in June while TNT’s fuelsurcharge rose from 9% in June to 9.5% in July. Following the upward tendency, UPS also raised itssurcharge from 10% in June to 11 % in July. FedEx, whose surcharges vary by country in Asia, hasincreased the export and import fuel surcharges in both Singapore and in Hong Kong to 8% for theperiod 6 July – 2 August from the previous 7% in June.
