Fuel surcharges for international air express shipments have gone up significantly in August aroundthe world following their increase during the last few months in response to rising oil prices,
CEP-Research analysis shows.In the USA, FedEx Express, UPS and DHL Express have considerably increased their August 2009fuel surcharges for domestic and international air express shipments to 6.5% from 2.5% in Julyafter 1% in June and the two-month cut to zero in April and May.
In Europe, all four integrators have further increased their surcharges. DHL surcharges roseto 11.5% for the period of 2 August – 5 September from 9.5% in July. Similarly, FedEx surchargeswent up to 12% in August from 10% last month. UPS raised its fuel surcharge to 12.5% in August from10.5% in July. TNT Express increased its European surcharge to 15.5% in August from 14% in July,while its separate UK surcharge also increased to 8% in August from 7% in July.
Showing a similar trend to Europe, air express surcharges in Asia increased considerably. TheDHL surcharge increased to 14.5% in August from 11.5% in July while TNT’s fuel surcharge rose to12% in August from 9.5% in July. Following the upward tendency, UPS also raised its surcharge to 14% in August from 11% in July. FedEx, whose surcharges vary by country in Asia, has increased theexport and import fuel surcharges in both Singapore and in Hong Kong to 11% for the period 3 August– 6 September from the previous 8% in July.
The air express fuel surcharges for August reflect the oil price level two months ago. Thefour leading express carriers calculate their surcharges based on indexes showing the previousmonth’s oil price level and announce them in advance for the following month. This results in atwo-month time lag between prices and the surcharge level.
The latest oil prices indicate that the fuel surcharges will continue to rise in the nearfuture. Oil prices slightly fell on Tuesday on profit taking
to settle at $71.42 a barrel on the New York Mercantile Exchange after climbing early this week to$73.75, its highest level since late June. The Brent crude oil price in London, however, rose to$74.28 a barrel. Last Friday, crude oil prices shot higher after the US Commerce Departmentreported that the country’s economy shrank at an annualised rate of only 1% in the second quarterwhich was less than the expected 1.5% contraction, US media reported.
Fatih Birol, the chief economist of the International Energy Agency, warned that the worldeconomy cannot sustain any further rise in oil prices heading toward a record high for the year. “Prices higher than about $70 could dampen a world economic recovery,” Birol told the FinancialTimes.
