Fuel surcharges for international air express shipments fell this month in the US, Europe andAsia after rising in June and May, CEP-Research analysis shows. The lower surcharge levels result
from the recently falling oil prices.European fuel surcharges for all the four integrators dropped in July compared to last month.FedEx surcharges fell to 13% in July from 14% in June while UPS dropped to 13.5% from 14%. DHLsurcharges also went down slightly to 13% for the period 4–31 July from 13.5% in June. The TNTExpress European surcharge showed a slight drop in July, to 16.5% from 17.5% in June. The separatesurcharge for the UK also fell to 9.5% from 10% in June.
In the US, FedEx Express, UPS and DHL Express have all reduced their July fuel surcharges fordomestic and international air express shipments to 8% in July from 10% last month.
Following the downward trend in Europe and the US, fuel surcharges of all the four integratorshave also decreased in Asia this month. The UPS surcharge fell from 16% in July to 17.5% in Junewhile DHL went down to 16.5% this month from 18% in June. The TNT surcharge dropped from 15% inJune to 13.5% this month. FedEx, whose surcharges vary by country in Asia, also reduced its exportand import surcharges in both Singapore and in Hong Kong from 12.5% in June to 11% in July.
The air express fuel surcharges for July reflect the oil price level two months ago. The fourleading express carriers calculate their surcharges based on indices 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.
Following a downward trend in June with oil prices settling around US$70 a barrel, oil hastraded between $70 and $80 this month amid mixed signals about the strength of US crude demand.Today, crude oil traded at $77.53 a barrel on the New York Mercantile Exchange. The Brent crude oilprice in London settled at $76.84 a barrel.
On Tuesday, a strong outlook for global crude demand pushed prices up 3%. Oil prices continuedto rise slightly on Wednesday following an inventory report from the US energy department. Itshowed crude supplies shrank more than analysts had forecast, which could be a sign for demandimproving, according to international media reports.
