Logispring II LP
Logispring II LP
Read MoreTag: Worldwide
Global integrators keep driving up fuel surcharges for air express
Top express companies including DHL, FedEx, UPS and TNT have further increased their fuel surcharges for air express shipments in July as a result of dramatically rising oil prices around the world.
DHL Express hiked its US air express and international fuel surcharge to 34 pct for the 29 June – 2 August period compared to 30 pct in June and 27 pct in May.
In Europe, DHL currently has an air express surcharge of 20 pct, up from 18.5 pct in June and 17.5 pct in May. In Asia Pacific, DHL’s fuel surcharge has risen from 21.5 pct in May and 23.5 pct in June to 26.5 pct in July.
FedEx Express increased its fuel surcharge for US domestic, import and export shipments to 32.5 pct for the July 7 – August 3 period from a previous 28 pct in June and 25 pct in May. In Europe, Middle East, India and Africa (EMEA), the FedEx fuel surcharge was hiked to 20 pct for July 7 – August 3 from 18 pct in June and 17 pct in May.
In Asia, where its surcharges vary by country, the July export shipment fuel surcharge in Singapore is 24.5 pct, up from 22 pct in June and 20.5 pct in May. The import shipment fuel surcharge for July is 26.5 pct, up from 24 pct in June and 22.5 in May. In Hong Kong, the FedEx fuel surcharge for exports and imports is 24.5 pct for July, up from 22 pct in June and 20.5 pct in May.
UPS has increased its US domestic and international air express fuel surcharge to 32.5 pct effective July 7 from the previous 28 pct applied in June and the 25 pct charged in May. In Europe, UPS hiked its fuel surcharge for express and expedited shipments to 20 pct from July 7 onwards from the previous level of 18.5 pct in June and 17.5 pct in May. In Asia, the UPS package service fuel surcharge went up to 24.5 pct on July 7 from 22 pct in June and 20.5 pct in May.
TNT Express increased its European fuel surcharge to 21.5 pct for the June 30 – 3 August period from 20 pct in June. In the UK, where it has different fuel surcharges, the global express surcharge went up to 13 pct in July from 11.5 pct in June. The separate UK domestic and economy express surcharge increased to 6.5 pct in July compared to the June and May figure of 5.5 pct. In the rest of the world (excluding the Americas), the TNT surcharge is at 27 pct for July compared to 23 pct in June. In North America, its fuel surcharge rose to 34.5 pct in July from 30 pct in June.
UPU Congress – debating society
UPU Congress – debating society
Read MoreIntegrator share prices slump as oil prices soar
Stock prices of top express companies including DHL parent Deutsche Post World Net, TNT, UPS and FedEx have fallen dramatically over the last six months, primarily due to rising oil prices and worsening economic conditions.
DPWN has experienced the most dramatic fall. Its June 30 share price of EUR 16.60 represented a 17.5 pct fall on the previous month and a 28.5pct slump compared to January 2, 2008.
TNT shares also fell sharply by 14.5pct to EUR 21.72 as of June 30 compared to one month earlier, and ended the first half of 2008 with an overall decrease of 22.2pct. Despite the completion of a EUR 500 million share buyback programme, its stock price was negatively impacted by the weaker economic environment, rising oil prices and a Q1 profit drop of 17.7pct.
UPS suffered a share price drop of 14.1pct to USD 61.47 as of June 30 compared to the previous month. The six-month drop in the share price was slightly lower at 12.5pct. In Q1, the slowing US economy and unprecedented increase in the cost of fuel along with additional charges for aircraft retirement and redundancies caused lower-than-expected US package volume and an accelerating contraction in the use of premium air products which resulted in a double-digit drop in profit.
FedEx is also suffering from the triple impact of soaring fuel prices, the weak US economy and financial charges causing its shares to fall by 14.5pct to USD 78.79 as of June 30 compared to May 30. It had the lowest half-year share price fall of the “Big Four” with 8.55pct.
Trying to compensate for higher fuel costs, the four integrators increased their air fuel surcharges dramatically to the 20pct – 30pct range last month as soaring oil prices drove up operating costs.
Read MoreDHL Germany delivers 88pct of parcels next-day
DHL Parcel Germany delivers 88 pct of its domestic parcels next-day, according to a new certification of its parcel transit times.
DHL said that it is the first parcel delivery company in Germany to have its transit times certified by one of the country’s main technical inspection organisations, TÜV Rheinland. The new measurement process is similar to that already used for letters for many years.
The certified transit time starts with the collection of the shipment from the customer and ends with delivery to the recipient. As well as the national averages, individual transit times are also calculated for routes and regions.
The current ratio of next-day parcel deliveries is 88 pct, DHL said. “This puts us among the market leaders, but that’s not enough. Our target is 90 pct+,” declared Uwe Brinks, Head of DHL Parcel Germany. “In contrast to competitors, we now have a reliable instrument with which we can guarantee the accuracy of transit times to our customers,” he added.
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