Leading international express and parcel carriers are increasing their air and road fuel surchargesdramatically to the 20% – 30% range as soaring oil prices drive up operating costs and provoke
transport industry protests across Europe and around the world.Global integrators DHL, FedEx, UPS and TNT, European road-based parcel carrier GLS, and otherexpress and parcel carriers around the world have all raised surcharges significantly this month totry to pass on higher fuel costs to their customers. The highest surcharges are generally in theUSA, followed by Asia and then Europe.
The hikes come amid dramatic protests in Europe and other world regions by trucking companiesangry about the impact of higher fuel prices. This week has seen strikes, blockades and otherprotests by tens of thousands of hauliers in Spain, Portugal, France, Belgium, the Netherlands,Poland and other European countries. Two drivers were even killed in separate incidents in Spainand Portugal. In Asia, there have been demonstrations by truckers in South Korea, Malaysia,Thailand, India and other countries.
In the aviation sector, IATA warned earlier this month that the “fuel crisis” would pushinternational airlines into the red this year with an industry-wide combined loss of $2.3 billionbased on an average price of $106.5 per barrel of Brent crude oil. The losses could even soar toUS$6.1 billion if oil averaged $135 per barrel for the rest of the year.
In the express and parcels industry, which is doubly impacted by higher operating costs forjet fuel and truck diesel, leading players have been gradually raising their surcharges over thelast few months in line with various published jet fuel price indices. These surcharges have jumpedsignificantly in June due to the surge in oil prices.
DHL Express hiked its US air express and international fuel surcharge to 30% for the June 1 –28 period and has already announced an increase to 34.5% for June 29 – August 2. It previouslycharged 27% in May and 22% in April.
In Europe, DHL currently has an air express surcharge of 18.5%, up from 17.5% in May and 16%in April, and will increase it to 20% in July. In Asia Pacific, DHL’s fuel surcharge has risen from19.5% in April and 21.5% in May to 23.5% in June.
FedEx Express increased its fuel surcharge for US domestic, import and export shipments to28% for the June 2 – July 6 period from a previous 25% in May and 20% in April. In Europe,Middle East, India and Africa (EMEA), the FedEx fuel surcharge was hiked to 18% for June 2 – July 6from 17% in May and 16% in April.
In Asia, where its surcharges vary by country, the June export shipment fuel surcharge inSingapore is 22%, up from 20.5% in May and 17% in April. The import shipment fuel surcharge forJune is 24%, up from 22.5% in May and 19% in April. In Hong Kong, the FedEx fuel surcharge forexports and imports is 22% for June, up from 20.5% in May and 17% in April.
UPS has increased its US domestic and international air express fuel surcharge to 28% fromJune 2 from the previous 25% applied in May and the 20% charged in April. In Europe, UPS hiked itsfuel surcharge for express and expedited shipments to 18.5% from June 2 onwards from the previouslevel of 17.5% in May and 15% in April. In Asia, the UPS package service fuel surcharge went up to22% on June 2 from 20.5% in May and 18% in April.
TNT Express increased its European fuel surcharge to 20% for June from 19.5% in May. In theUK, where it has different fuel surcharges, the global express surcharge went up to 11.5% in Junefrom 11% in May and 10% in April. The separate UK domestic and economy express surcharge remainedat 5.5% in June, as in May, and compared to the April figure of 5%. In the rest of the world(excluding the Americas), the TNT surcharge is at 23% for June compared to 21% in May. In NorthAmerica, its fuel surcharge rose to 30% in June from 27% in May.
In the European road express sector, where surcharges are much lower than for air express,the DHL Express diesel surcharge for its Europlus service for June is 6.5% (not all markets), upfrom 6% in May and 5.5% in April. This will rise to 8.5% in July, according to DHL Germanyinformation.
GLS applies slightly different diesel surcharges in Europe depending on the market. TheGerman surcharge is 9.48% for June, up from 7.68% in May and 7.56% in April. The Belgian surchargeis 9.21% in June, compared to 7.65% last month and 7.08% in April. In France, the current surchargeis 7.91%.
