Fuel surcharges for international air express shipments continue to rise around the world thismonth with the hike expected to continue in October due to higher oil prices, CEP-Research analysis
shows. The increase in September follows a slight rise in August.In Europe, all the four integrators raised their express fuel surcharges in September. DHL andFedEx increased their surcharges to 17% from 16.5% last month, while UPS raised its surcharge to15% from 14%. TNT also raised its September surcharge to 20% from 19.5% in August.
In the USA, DHL and FedEx both raised their express surcharges from 8.5% in August to 9.5% thismonth. UPS went up to 10.5% from 10% in August. Next month, the FedEx and DHL surcharges willfurther rise to 10.5%.
Customers in Asia Pacific also face higher bills this month. DHL raised its surcharge to 22%from 21% last month. FedEx increased to 18% from 17% and UPS went up to 18% from 16%. TNT alsoraised its surcharge for Asia and the Middle East to 19.5% from 19% last month.
These increases reflect the rising oil price since June. Brent crude has risen from around the$100 mark at the end of June to nearly $113 at present showing some ups and downs over the lastmonth and including a major hike in the end of August rising to $120. Similarly, WTI crude has goneup from below $95 in June to over $108 per barrel, also experiencing some ups and downs recentlyand rising over $110 in the beginning of September. This upward trend means express fuel surchargesare set to rise in November as well due to the two-month time lag.
The air express fuel surcharges for September reflect the oil price level two months ago. Thefour integrators calculate their surcharges based on indices showing the previous month’s oil pricelevel and announce them in advance for the following month. This results in a two-month time lagbetween the fuel price and surcharge change.
