DHL Express, FedEx/TNT and UPS are all reducing their temporary surcharges for international shipments from China as airlift capacity pressures start to ease off.
The three global express operators introduced differently named surcharges in March/April to compensate for rising costs as cargo capacity on passenger aircraft disappeared due to flights being cut dramatically because of the coronavirus pandemic.
The surge in PPE shipments from China to destinations worldwide in April and May then increased capacity pressures even more, forcing the integrators to hike the surcharges for ex-China shipments and introduce various weight and volume restrictions.
But PPE shipments from China are now declining again after countless millions of supplies were successfully distributed to Europe, North America and other parts of the world.
In response, FedEx was the first integrator to make a move this week by reducing the surcharge for most FedEx Express and TNT shipments from China to Europe from €1.80/kg to €0.90/kg, as of Monday (June 22). Other surcharges, including from China to the US, remain unchanged.
UPS is following with a broader move by reducing its Peak Surcharge for shipments from China Mainland to most international destinations, effective from Sunday June 28.
The UPS surcharge for express shipments from China to the U.S. will fall from $0.79/lb to $0.57/lb, for expedited goods from $0.75/lb to $0.52/lb and for freight shipments from $1.81/lb to $1.36/lb.
In Europe, the surcharge for express shipments from China will drop from €1.55/kg to €0.66/kg, expedited from €1.46/kg to €0.58/kg and freight from €3.54 to €2.21.
The significantly lower surcharges from Hong Kong to Europe will also be reduced to the same levels as from China. All other previously announced Peak Surcharges will continue to apply and remain unchanged, the company said in a service update.
Finally, DHL Express is reducing its Emergency Situation Surcharge (ESS) for TDI shipments from China to destinations around the world as of July 1. The surcharge for shipments to Europe, the Americas and the Rest of World will fall from € 1.80 p/kg to € 0.90 p/kg, while the ESS from China/Hong Kong to Australia/New Zealand will be reduced from € 1.80 p/kg to € 1.65 p/kg.
“This adjustment reflects changes in market dynamics and air capacity availability. Given expected reductions to our additional costs out of China and Hong Kong, we will make a downward adjustment,” the company said in a customer service update.
The DHL Express emergency surcharges from other origins remain unchanged at the levels announced for May 24 onwards.
