FedEx, DHL take time over surcharge

HONG KONG IMAIL 5th October 2001
FEDEX, DHL TAKE TIME OVER SURCHARGE

By Keith Wallis

AIR express cargo operators Federal Express and DHL are adopting a wait-and-see approach on whether to impose a surcharge on freight shipments following last month’s terrorist air attacks in the United States.

TNT, a subsidiary of the European air cargo and logistics group TPG, said a “small supplement will be introduced worldwide in a phased approach” to support additional service and security measures. A TNT spokesman said the extra checks include the x-raying of all shipments, enhanced security controls and some restrictions on the acceptance of consignments.

Ross Allen, DHL Asia-Pacific and Middle East operations director, told iBusiness: “We are just monitoring the situation, trying to ascertain the responses by various airlines to the increase in costs.” Asked if DHL is likely to impose a surcharge, Mr Allen added: “I honestly don’t know. We’re piecing together the various responses by carriers by location. We are discussing internally what action, if any, we should take.” In the US and Europe, DHL operates its own fleet of aircraft, but in Asia buys space in scheduled passenger flights.

Mr Allen said Singapore Airlines, Lufthansa and KLM are the only carriers so far to impose a global fee to cover the huge rise in insurance cover since four aircraft were hijacked and crashed in New York, Washington DC and Pennsylvania.

A Federal Express spokesman said the world’s largest air express company had no plans to introduce a supplement. The firms were commenting after the Board of Airline Representatives (BAR) lodged an application yesterday with the Civil Aviation Department for a 50 HK cents per kilo levy on airfreight shipments from Hong Kong. BAR is optimistic the surcharge will be approved quickly. A group insider believed the department would give the application “its urgent attention”. He said it recognised airlines had strong grounds for introducing the charge.

BAR member airlines, who include most of the carriers operating at Chek Lap Kok airport, voted to apply for the surcharge in an effort to recoup the dramatic surge in insurance costs since the terrorist action on September 11. Copyright 2001 Hong Kong iMail. Source : World Reporter (Trademark)