fuel surcharge
Join Date: May 2008
Location: Germany
Age: 59
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Of course - in Germany the current Fuel Surcharge is € 1.00 - 1.05/kg (NW has announced already € 1.10) and on some routes to China u receive a kick back as forwarder instead paying a regular freight to the airline.
Join Date: Jun 2007
Location: MSP
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I'm in the USA. In 2005, I remember the fuel surcharge for freight on LH from ORD to FRA was $.45/kg USD. Only a few years before that, there were no fuel surcharges at all and great profits to be made. Fuel on LH is currently at $1.10/kg USD and I believe it will go even higher.
Shippers are indeed looking at alternatives, the main one of course, being steamship lines.
Shippers are indeed looking at alternatives, the main one of course, being steamship lines.
Trashhauler, that's already happening. Kitty Hawk went out of business due to that very reason. Each time the fuel surcharge went up. the amount of freight carried went down. In the US most of the business is in the eastern half of the country and you can truck stuff in 2-2.5 days. Shipping clerks started asking, "Do we really need this tomorrow?" Two day trucking is about 20% overnight air.
Join Date: Apr 2008
Location: Kegworth UK
Age: 71
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Carriers who use GSAs to sell their service pay the GSA a commission on freight only, so they reduce the (commissionable) freight rate and increase he fuel surcharge, and thereby reduce the commission they have to pay.
I know of one carrier doing rates from the UK to the Far East of GBP 0.80 all in per kg. With fuel at 0.72, war risk at 0.09 and handling at 0.075 do the maths. Not much left for the GSA.
I know of one carrier doing rates from the UK to the Far East of GBP 0.80 all in per kg. With fuel at 0.72, war risk at 0.09 and handling at 0.075 do the maths. Not much left for the GSA.
Join Date: Feb 2001
Location: Europe
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Fuel surcharge became a joke. Initially it was serving the purpose, but now with instant fuel price increase it is just a sort of marketing tool. Instead of rising the rates we see airlines rising the fuel surcharges. Ahh, and don't forget security charges invented after 2001, and then known/unknown shipper game (you know what I mean) etc.
More and more customers are now asking straight for "all-in" rates. It is just unbelievable to see the rates which are less than 10% of a fuel surcharge applied over them.
More and more customers are now asking straight for "all-in" rates. It is just unbelievable to see the rates which are less than 10% of a fuel surcharge applied over them.
Join Date: May 2007
Location: Middle East
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FSC Scam, surely it is, but don't call me surely...!
FSC is now the biggest scam out there and airlines should be ashamed or the competition authorities should stop chasing the little guy and do some serious investigation and prosecution.
In UK GBP 0.80 In Euros 1.05-1.10 and in USD 1.5-1.10 depending on your part of the world and what the dominant national carrier says or does.
However Fuel is bought in USD so anyone who pays a GBP or EUR FSC is being ripped off doubly by exchange rate as well as a less than transparent escalation mechanism. As someone said earlier its not commissonable so its the best way to improve bottom line contribution for those airlines who outsource their sales.
In UK GBP 0.80 In Euros 1.05-1.10 and in USD 1.5-1.10 depending on your part of the world and what the dominant national carrier says or does.
However Fuel is bought in USD so anyone who pays a GBP or EUR FSC is being ripped off doubly by exchange rate as well as a less than transparent escalation mechanism. As someone said earlier its not commissonable so its the best way to improve bottom line contribution for those airlines who outsource their sales.
