Fuel surcharges for international air express shipments have generally risen in March followinga drop in February and following a mixed trend of increases and reductions over the last few
months, according to CEP-Research analysis.In Europe, all four integrators raised their surcharges in March with UPS and DHL rates risingto 17% from 16.5% in February. FedEx increased its surcharge to 17.5% this month from 16.5% inFebruary. TNT’s European and UK surcharges also rose to 20.5% from 20% and to 14% from 13.5%respectively.
In the USA, FedEx, UPS and DHL all increased their March surcharges to 13% from 11.5% inFebruary.
Following the upward trend in Europe and the USA, surcharges in Asia rose for UPS, DHL andFedEx. The UPS surcharge rose from 19% in February to 20.5% in March while DHL also increased to23.5% this month from 22% last month. FedEx, whose surcharges vary by country in Asia, raised itssurcharge both in Singapore and Hong Kong to 17.5% for the time period March 5 – April 1 from 16%in February. Only TNT’s Rest Of the World surcharge including Asia remained at the same level inMarch, February and January with 20%.
The air express fuel surcharges for March 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.
Meanwhile, oil prices have recovered from the lowest price in almost a week on speculation thatfuel demand may rise as US and Chinese economies are strengthening. This year, oil has climbed onconcerns that tensions with Iran might lead to a military conflict in the Middle East, where morethan half the world’s oil reserves are located. Today, oil was up on the New York MercantileExchange this morning at $106.98 a barrel while Brent futures in London increased to $126.04.
On February 20 this year, crude surpassed $120 a barrel for the first time since May with theOrganisation of Petroleum Exporting Countries (OPEC) pumping the most in three years following theIran-driven run in oil prices to the highest since 2008. Accordingly, the average price of OPEC’smain crude grades has surpassed $120 a barrel since Feb. 22, the longest stretch since 2008,Bloomberg news agency reported.
