Fuel surcharge effects
By Splatty • May 7th, 2008 • Category: Air Cargo, Airlines
With the price of jet fuel consistently setting record highs, the fuel surcharge levied by airlines for cargo movement continues to climb. Cargolux is the latest to announce an increase.
Via Aircargoworld.com:
The current level of the fuel surcharge will be adjusted to 1.05 euros per kilo. The charge is based on actual weight and will be implemented across the Cargolux network according to local legislation and wherever it is legally permitted.
On the domestic U.S. front, I’m hearing reports that many freight forwarders will be announcing an increase in the fuel surcharge to $1.05 per kilo in the next week or so.
At what point does the price of jet fuel seriously start affecting the air cargo industry? At what point will air cargo shippers start looking at diverting a large majority of their air cargo to sea cargo? We are already starting to see airlines reduce lanes, retire aging aircraft, park aircraft, and re-allocate aircraft to more lucrative lane segments. The future of air cargo hinges sharply on the price of fuel and it will have a negative effect on shippers and forwarders alike.
Stumble it!
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