Fuel surcharges for international air express shipments have increased in April due to risingoil prices in recent months and are expected to increase further in the next few months following
the uprisings in Arab countries and the escalating conflict in Libya in particular, CEP-Researchanalysis shows.For April, the fuel surcharges of the four leading express operators have all risen throughoutthe USA, Europe and Asia. This is the latest in a series of increases since the start of thisyear.
In the USA, FedEx Express, UPS and DHL Express surcharges for domestic and international airexpress shipments all jumped from 11% in March to 13% in April.
In Europe, the US operators FedEx and UPS both increased their April surcharges to 16.5% from15.5% in March. DHL increased its European fuel surcharge to 16% this Month from 15.5% in March.The TNT Express European surcharge also went up from 18.5% in March to 19.5% for April while itsseparate UK surcharge increased to 13% from the previous 11%.
Similarly, all the integrators increased their fuel surcharges in Asia for April. The DHLsurcharge went up from 20.5% in March to 22% for the period of April 3 – May 7. UPS raised itsApril surcharge in Asia to 20.5% from 18.5% in March. The TNT ROW (rest of the world) surchargerose from 18% in March to 19% in April. FedEx, whose surcharges vary by country in Asia, went up to15.5% in April from 13.5% in March both in Singapore and Hong Kong.
The air express fuel surcharges for April 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.
Over the last few months, oil prices have continuously risen with Brent futures climbing over$120 a barrel. This is a dramatic increase compared to mid-November last year when oil pricestraded slightly above $80. With considerable increases during December, Brent Crude alreadysurpassed the $90 mark in January getting closer to the $100 barrier. On the New York MercantileExchange, oil had fallen over $1 to $108.55 this morning. Brent futures in London also slightlywent down at $122.90 a barrel.
The slightly downward trend follows a cut in output from the world’s top exporter Saudi Arabiawith rising concern that high prices were hurting demand. Concerning the latest increases in oilprices, Kuwait’s oil minister Sheikh Ahmad Al Abdullah Al Sabah said that the loss in sweet crudevolumes due to the violent conflict in Libya is partly responsible for the latest rise whiletraders were also to blame, the Wall Street Journal reported.
