Fuel surcharges for international air express shipments have dropped in July due to fallingcrude oil prices around the world in recent months, following several months of surcharge increases
earlier this year.The four leading international air express operators – DHL, UPS, FedEx and TNT – have allreduced their surcharges in Europe, the US and Asia, CEP-Research analysis showed.
In Europe, DHL and FedEx both reduced their surcharge to 17% in July from 18% in June while TNTExpress’s European surcharge dropped back to 20.5% from 21.5% last month. UPS’s surcharge alsofell, to 15.5% in July from 18% in June.
In the US, FedEx, UPS and DHL all reduced their surcharges, from 14.5% in June to 12% thismonth.
In Asia Pacific, DHL, which has the highest level, reduced its surcharge from 24.5% in June to23% in July while TNT Express’s surcharge for Asia Pacific, Middle East and Africa fell to 20% from21% in June. FedEx’s fell to 16.5% in July from 18.5% in June.
The air express fuel surcharges for July 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.
The July surcharge level, which continues a downward trend that began in June following hikes inMarch, April and May, reflects a stabilisation of oil prices in April and a downward trend sinceMay, which resulted in this month’s drop and will continue in August.
Since the start of 2012, the price of Brent Crude oil has soared from the $105 per barrel level,to peak several times at more than $125 during March. Since then, the oil price level has droppedback to the level towards the beginning of the year, trading at slightly above $100 per barrel.
Oil prices today rose above $102 after Chinese GDP data turned out to be slightly better thanexpected, with the US also increasing the pressure on Iran’s ability to export oil, identifyingTehran’s main tanker firm and exposing dozens of its vessels as government-controlled entities,Reuters reported. Brent crude oil futures in London were up at $102.36 a barrel this morning. Onthe New York Mercantile Exchange, oil was also up to $86.85.
Despite relief that the Chinese second-quarter GDP data was not as bad as some had feared, Chinais growing at its slowest pace since 2009, as the economies of two of its biggest markets, theEuropean Union and the United States, remain weak, the news agency added.
