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Air Freight Fuel Surcharges Spread

El Al, Japan Airlines, American Airlines Cargo and British Airways World Cargo all announced this week increases in their fuel surcharges effective next month. Most charges will go to 55 cents per kilogram for international shipments. For U.S. domestic shipments, the surcharge at most airlines is going up to 22 cents per pound.

Citing the rise in crude oil prices to over $70 a barrel, Northwest Cargo will raise its fuel surcharges a little higher than others effective May 8. International bulk surcharges will be raised from $.50 to $.60 per kilogram. Domestic bulk freight and VIP surcharges will rise from $.21 to $.25 per pound.

Most airlines maintain fuel indices based on the average spot price of jet fuel in the five major markets of New York Harbor, U.S. Gulf Coast, Los Angeles, Rotterdam and Singapore. When the index passes a threshold for a significant period, usually two weeks, the fuel surcharge is changed.

Chris Bosworth, general manager commercial development at British Airways World Cargo said, "The market remains under intense pressure from climbing fuel costs, which directly impact the costs of providing air freight. It is regrettable but necessary for our fuel surcharge to be increased at this time in line with our fuel index."

 

 


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