Fuel surcharges for international air express shipments have again risen in April 2012 amidescalating fears about the jump in crude oil prices around the world.
The four leading international air express operators – DHL, UPS, FedEx and TNT – have raisedsurcharges around the world for the second successive month in line with their crude oilprice-based surcharge indices, CEP-Research analysis showed.
In Europe, all four integrators raised their surcharges in April. TNT Express, which has thehighest level, put its European surcharge up to 21.5% this month from 20.5% in March, while itsseparate UK surcharge went up to 15% from 14%. DHL hiked its rate to 18% from 17% last month, andFedEx adjusted upwards to 18% from 17.5%. UPS’ surcharge rose to 17.5% from 17%.
In the USA, FedEx, UPS and DHL all increased their surcharges to 14% this month from 13% inMarch.
In Asia Pacific, DHL, which has the highest level, put its surcharge up to 24% from 23.5% lastmonth. The UPS surcharge increased to 21.5% from 20.5%, and TNT hiked its Asia Pacific surcharge to21% from 20%. FedEx’s surcharge rose to 18.5% from 17.5% in the region.
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.
Since the start of 2012, the price of Brent Crude oil has soared from the $105 per barrel levelto peak several times at more than $125 during March. The price has eased somewhat in the last fewdays down to $123, however, following Saudi comments about wanting to see a lower price andinternational efforts to release some of the world’s oil reserves.
The price trends in March indicate that air express surcharges will again rise in May due to thetwo-month time lag between fuel price and surcharge implementation.
Viewed over a longer period, the current price level is the highest for about 12 months, whenBrent Crude reached the $120 level in April 2011 before dropping back during the following monthsof 2011. The current surge now takes the price towards the peak levels seen in 2008 when it soaredbeyond $125 to the $140 level.
