No Surprise Department: Air Cargo fuel surcharges on the rise

Oil prices have backed down a bit over the past couple of days, but it’s not surprising with the recent upwards volatility of oil prices that the airlines are hiking fuel surcharges. Via Air Cargo News:

Polar Air Cargo/Atlas Air, we will increase its fuel surcharge from North America to destinations other than South America by $0.05/kg commencing Friday, March 28, 2008. From this date the new surcharge will be $0.90/kg. The fuel surcharge from North America to South America will remain the same at $1.10/kg.

The surcharges will continue to be applied to the chargeable weight of the shipment. Likewise the present minimum charge of $5.00 per airwaybill will continue to be applied to small shipments.

“We at Polar Air Cargo/Atlas Air scheduled services apologise for the inconvenience caused by these surcharges; but the fuel market volatility leaves us little choice,” said a spokesperson.

British Airways World Cargo will increase its charge to GBP0.63 / USD0.95 / EUR0.95, with effect from Thursday, 3 April 2008.

If you are a shipper check with your freight forwarder or 3PL for the most recent updates. Higher surcharges across the board - air cargo, trucking, containerized cargo, etc. - is increasing product costs at a time when the economy can ill-afford them. Not to mention that the weak dollar is wreaking havoc with importers’ profitability and first cost basis.