Fuel surcharges for international air express shipments have further increased in June aftercontinuously rising oil prices earlier this year but could drop back again in the summer as oil
prices have recently fallen, CEP-Research analysis shows.For June, the fuel surcharges of the four leading express operators have all risen throughoutthe USA, Europe and Asia. Reflecting oil prices in April due to the two-month pricing gap, this isthe latest in a series of increases since the start of this year.
In the USA, FedEx Express and DHL Express surcharges for domestic and international air expressshipments rose to 16.5% in June from 15.5% in May while UPS raised its surcharge to 16% from 15%last month.
In Europe, UPS and DHL both increased their June surcharges to 18% from 17.5% in May. Similarly,FedEx increased its European fuel surcharge to 18.5% this month from 17.5% in May. The TNT ExpressEuropean surcharge also went up from 20.5% in May to 21.5% for June while its separate UK surchargeincreased to 15% from the previous 14%.
Similarly, all the integrators increased their fuel surcharges in Asia for June. The DHLsurcharge went up from 24% in May to 25% for the period of June 5 – July 2. UPS raised its Junesurcharge in Asia to 24% from 23% in May. The TNT ROW (rest of the world) surcharge rose from 20%in May to 21% in June. FedEx, whose surcharges vary by country in Asia, went up to 19% in June from18% in May both in Singapore and Hong Kong.
The air express fuel surcharges for June 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.
At present, however, oil futures are falling on continuing fears over Greece’s debt crisis andconcerns over the US economy and are now trading at the lowest level in four months. Compared tothe last few months when oil traded above the $100 mark on the New York Mercantile Exchange, itdropped far below this level trading at $91.66 a barrel this morning. Brent futures in London alsowent down to $111.77 a barrel.
While the Greek debt crisis is generating fears of another global financial crisis that couldlead to lower fuel demand, the International Monetary Fund has urged the US Congress to raise thecountry’s debt limit to avoid a debt default, international media reported.
