Fuel surcharges for international air express shipments are showing a mixed trend this monthwith a slight drop in the USA but stable or higher levels in Europe and Asia, CEP-Research analysis
shows.In Europe, DHL and UPS surcharges have remained at 13% and 13.5% respectively for August, thesame level as last month. FedEx increased its European fuel surcharge slightly to 13.5% from 13% inJuly. In contrast, the TNT Express European surcharge has been reduced to 16% in August from 16.5%in July, while its separate surcharge for the UK also fell to 9% from 9.5% in July.
In the USA, FedEx Express, UPS and DHL Express have all reduced their August fuel surcharges fordomestic and international air express shipments to 7.5% from 8% last month.
In Asia, DHL and TNT raised their surcharges while UPS and FedEx remained at the same level. TNTraised its surcharge to 14% in August from 13.5% last month, while the DHL surcharge also increasedfrom 16.5% in July to 17% this month. The UPS surcharge remained at 16% in August as in July.FedEx, whose surcharges vary by country in Asia, also remained at the July level of 11% both inSingapore and Hong Kong.
The air express fuel surcharges for August 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.
Oil prices have gradually risen since mid-May from below $70 a barrel to more than $80, althoughprices were uneven during June. WTI crude was trading at over $81 a barrel today while Brent Crudewent above $80.50 a barrel. The upward trend during July implies that air express surcharges willrise in September.
