Air express fuel surcharges plummet as oil cheapens further

DHL, FedEx, UPS and TNT have further reduced their fuel surcharges for international air express shipments.

DHL, FedEx, UPS and TNT have further reduced their fuel surcharges for international air express shipments.

In the USA, both FedEx Express and UPS have decreased their December 2008 fuel surcharges for domestic and international air express shipments dramatically by nearly half the price from 28.5% in November to 15% for December. DHL Express surcharges for its US air express and international shipments also dropped heavily by 13.5 percentage points to 17% for the 30 November – 3 January 2009 period compared to 30.5% in November.

In Europe, the fall is much more moderate. DHL has decreased its air express surcharge to 14% for December from 17% in November. TNT Express reduced its European fuel surcharge to 16% for the 1-28 December period from the previous 19% while its separate UK surcharge dropped from 10.5% in November to 8% for December. UPS also decreased its Europe fuel surcharge for express and expedited shipments to 15% from 1 December onwards from the previous level of 18% in November. FedEx’s surcharge in Europe, Middle East, India and Africa (EMEA) dropped by three percentage points from 17.5% in November to 14.5% for December.

In Asia Pacific, UPS and FedEx in particular have substantially reduced their fuel surcharges. DHL’s fuel surcharge has dropped to 17% from 21.5% in November, while UPS’ surcharge decreased heavier to 17.5% in December from 24.5% in November. TNT’s “rest of the world” surcharge (excluding the Americas) dropped 5.5 percentage points to 15.5% for December compared to 21% in November.

FedEx, whose surcharges vary by country in Asia, decreased the export fuel surcharge in Singapore to 15% from the previous 22.5% and the import fuel surcharge dropped to 17.5% from 24.5%. In Hong Kong, the FedEx fuel surcharge for exports and imports also decreased to 15% for December compared to 22.5% in November.