Top courier companies impose fuel surcharge

Major international courier companies have slapped a seven per cent fuel surcharge on all shipments effective September 1, according to sources.

A recent DHL announcement said: "Due to crude oil prices rising to a 13-year high, it has become necessary for us to charge a seven per cent fuel surcharge on all shipments as of September 1."

"The surcharge will be pegged at 7 per cent and is benchmarked against the Amsterdam-Rotterdam-Antwerp fuel index. The surcharge will be adjusted in accordance with this index in future."

The same has been implemented by UPS and Federal Express. But TNT Worldwide Express has yet to do so, said an official.

In justifying the charge, David Wild, DHL's general manager, UAE, told Gulf News: "All the international courier companies regularly monitor the ARA fuel index.

When the index reaches a certain level, we add a certain amount to the cost, and we bring it down when the price goes down. It is a periodic adjustment.

"Once the price of fuel goes down, we withdraw the surcharge within a month, which is our usual invoicing period," he said.

DHL is, meanwhile, expanding its regional and UAE operations due to strong growth in business, he said.

In May Dubai's Cargo Airlines Sub-Committee (Casco) raised the fuel surcharge on freight services.

From May 15, the fuel surcharge on international flights operating out of Dubai International Airport went up by 20 fils to Dh0.75 per kilogramme.

Casco follows the Luft-hansa fuel index. If the index remains above 190 for two weeks, it usually raises the fuel surcharge in accordance with the oil price increase.