Fuel Surcharges On the Rise

With the recent record high of oil reaching $88 per barrel, don’t be surprised to see the fuel surcharge on international airfreight shipments to increase to $0.70 per kilo in the near future.

From my recent readings, this latest increase has been caused by simmering tensions between Turkey and Kurdish separatists in Northern Iraq. Although, the record prices could ease if the conflict subsides.

Via Bloomberg.com:

“If we don’t see an escalation of the conflict between Turkey and the Kurds, we’ll see a sharp decline of $5 or $6,” said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich AG in Vienna. “Markets are tight, but not tight enough to justify $87.”