Fuel surcharges for international air express shipments have gone up in October around the worldafter a slight drop in September and following their increase during the last few months in
response to rising oil prices, CEP-Research analysis shows.In Europe, all four integrators have raised their surcharges. DHL Express surcharges rose to12% for the period of 4-31 October from 11% in September. Similarly, FedEx surcharges went up to12.5% in October from 11.5% last month. UPS raised its fuel surcharges to 13% in October from 12%in September. The TNT Express European surcharge increased to 16% in October from 15 % inSeptember, while its separate UK surcharge also rose to 8% in October from 7.5% in September.
In the USA, FedEx Express, UPS and DHL Express have considerably raised their October 2009surcharges for domestic and international air express shipments to 7.5% from 5.5% in September.This is quite an increase compared to the 2.5% figure for July and the two-month cut to zero inApril and May.
Following the general trend, air express surcharges in Asia increased as well. The DHLsurcharge rose to 15% in October from 13% in September while TNT’s fuel surcharge also increased to12.5% in October from 11% in September. FedEx, whose surcharges vary by country in Asia, hasincreased the export and import fuel surcharges in both Singapore and in Hong Kong to 11.5% for theperiod 5 October – 1 November from the previous 10% in September. UPS also raised its air expresssurcharge to 14.5% in October from 13% in September.
The air express fuel surcharges for October 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.
Oil prices have risen recently reaching a new high for 2009 that even surpassed $80 perbarrel on the back of the weak US dollar and encouraging US bank results. However, oil fell againon Tuesday to $79.09 on the New York Mercantile Exchange as soon as the dollar went into positiveterritory against the euro. The Brent crude oil price in London also fell to $77.24 a barrel.
Crude prices have risen strongly this month, moving in the opposite direction of the dollar.When the dollar loses value, crude becomes very attractive as an investment as it is traded indollars and thus gets cheaper when the U.S. currency is weak, US media reported.
Experts expect the oil prices to drop back rather than move higher once fundamental factorsre-establish themselves as the main driver of the oil price which is now dominated by financialsand market optimism.
