Fuel surcharges for international air express shipments have risen across the USA, Europe andAsia this month and a dramatic surge in oil prices over the last few weeks signals that further
increases are likely early next year, CEP-Research analysis shows.In Europe, all integrators raised their fuel surcharges in December. FedEx and UPS increasedtheir surcharges to 14% this month from 13.5% in November while DHL rose from 13% to 13.5%.The TNTExpress European surcharge also went up from 16.5% last month to the current 17%.
In the USA, FedEx Express, UPS and DHL Express raised their surcharges for domestic andinternational air express shipments to an even greater extent from 8.5% in November to 10% thismonth.
Similar to Europe and the USA, all integrators raised their surcharges in Asia as well. DHL roseto 18% in December from 17% in November which was slightly higher than the UPS December surchargeof 17.5%, up from 16.5% last month. The TNT surcharge went up from 14% to 15% this month. FedEx,whose surcharges vary by country in Asia, rose12.5% in December from 11.5% in November both inSingapore and Hong Kong.
The air express fuel surcharges for December reflect the oil price level two months ago. Thefour leading express carriers calculate their surcharges based on indices 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.
Over the last few weeks, oil prices have risen dramatically. Compared to mid-November when oilprices traded slightly above $80, Brent Crude already surpassed the $90 mark trading at $90.95 inLondon this morning. On the New York Mercantile Exchange, oil was slightly lower at $87.72.
