FedEx and UPS hold fire on surcharge

Transport giant Federal Express will wait until Oct 1 before introducing an additional charge to cover an overtime fee imposed by the Customs Department.

However, its rivals DHL International (Thailand) and TNT Express Worldwide (Thailand) told their customers that they would introduce the surcharge starting yesterday.United Parcel Service (UPS) said it would wait for market reaction before deciding whether to continue absorbing the costs or find an alternative solution.

FedEx said that as a result of delaying the introduction of the surcharge it would have to absorb 30 million baht in additional costs.

The figure was based on a report prepared by the Conference of Asia Pacific Express Carriers (Capec), which claims that its members including FedEx, DHL, UPS and TNT have absorbed overtime costs amounting to one million baht each per day.

“We will continue to absorb the new charges and will not be applying any charge to our customers until Oct 1,” said Adrian Grundy, spokesman and senior communications specialist of FedEx responsible for the South Pacific.

FedEx will then apply a charge of 300 baht to all low-value import shipments cleared after normal office hours.

DHL and TNT are now charging 300 baht on all imported shipments and 150 baht for exported shipments.

The Bangkok International Customs Bureau on July 16 imposed an overtime surcharge of 150 baht per waybill for shipment clearance between 6 pm and midnight.

The charge doubles to 300 baht from midnight to 6 am. The rate on weekends and public holidays is 200 baht.

Mr Grundy said FedEx was continuing to do business in Thailand as usual and absorbing the additional costs.

“Although we are a member of Capec, the company will make its own decision on whether to further absorb the increases, while other carriers may decide by themselves on whether to pass the costs on to customers,” he said.

Mr Grundy said FedEx, like other carriers, was urging the authorities to reduce the charges in order to benefit all express delivery service users in Thailand.