Fuel surcharges for international air express shipments have fallen in October after a few upsand downs in the second half of this year, CEP-Research analysis shows.
For October, the surcharges of the four leading express operators have all decreased in the USA,Europe and Asia.
In the USA, FedEx Express and DHL Express surcharges for domestic and international air expressshipments went down to 14.5% in October from 15.5% in September while UPS reduced its surchargefrom 15 % last month to 14%.
In Europe, DHL and UPS reduced their surcharges to 17% in October from 17.5% in September. TheFedEx surcharge also fell to 17% from 18% in October. The TNT Express European surcharge fell to20% in October from 21% in September while its separate UK surcharge went down from 14.5% to 13.5%in October.
Similarly, all the integrators reduced their fuel surcharges in Asia for October. The DHLsurcharge went down from 24% in September to 23% for the period of 1-31 October. The UPS surchargein Asia fell to 22% in October from 23% in September. FedEx, whose surcharges vary by country inAsia, went down to 17% in October from 18% in September both in Singapore and Hong Kong.
The air express fuel surcharges for October 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.
After the steady rise in oil prices in the first half of 2011 when oil traded above the $100mark on the New York Mercantile Exchange, oil prices have been going up and down over the last fewmonths on concerns over the debt crisis in Europe. In recent days, however, oil rose in New Yorkagain on speculation that the US economy will recover, thus boosting demand for raw materials,Bloomberg reported.
This morning, oil rose again to $85.42. Brent futures in London were considerably lower thanthis year’s peak levels at $113.10 today.
Yesterday, the US Energy Department said that oil and natural gas supplies grew unexpectedlylast week, suggesting demand remains low. Earlier this week, the International Energy Agency, theOrganisation of Petroleum Exporting Countries and the US Energy Information Administration alllowered their forecasts for oil demand in 2012, assuming a slowdown in global economic growth.
