International express fuel surcharges drop as oil prices decline
DHL, FedEx, UPS and TNT have significantly reduced their fuel surcharges for international air express shipments around the world this month against a background of a continued sharp fall in oil prices largely driven by the escalating global financial crisis, CEP-Research analysis shows.
Oil prices have declined sharply from a peak of nearly USD 150 a barrel in July to below USD 85 a barrel this week on the various trading exchanges. In September, the integrator’s fuel surcharges were largely stable and did not fully reflect the downward trend. This is because the four leading express carriers calculate their surcharges based on indexes showing the previous month’s oil price level and announce them in advance for the following month, thus resulting in a two-month time lag between prices and surcharge level.
In October, however, surcharges show a clearly recognisable drop around the globe, with the biggest reductions in the USA, significant falls in Asia and moderate reductions in Europe.
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