The Hindu Business Line : Air cargo carriers hike fuel surcharge

THE renewed rise in crude oil prices will upset the logistics budgets of domestic corporates with some European carriers increasing the fuel surcharge by almost 24 per cent.

The increased cost of air freight will have a serious impact on exporters as most of them would be rushing consignments for the winter sales in the US and the European cities.

The bulk of air consignments continue to be garments, leather and leather products.

Though the latest spurt in prices has resulted in an increase in fuel surcharge across airline networks, Indian exporters have the additional burden of security surcharge and screening charges.

European air cargo carriers such as Lufthansa, Air France and Cargolux are planning to increase the fuel surcharge to Rs 17 per kg from the earlier Rs 13.75 per kg in the next few days.

Others like Alitalia increased the fuel increase to Rs 13 per kg on September 15 from the earlier Rs 10 per kg

Lufthansa Cargo is raising its fuel surcharge from 0.25 to 0.30 euros per kg of actual weight with effect from October 4. Cargolux, the Luxembourg-based airline, is also increasing the fuel surcharge to 0.30 euros per kg across its entire network.

(The fuel surcharge calculation is based on the average price in key markets such as Rotterdam, Singapore, Gulf States, Mediterranean and the US.)

The additional charges that the Indian exporters have to pay are the security surcharge of Rs 7 per kg and Rs 1.50 per kg for screening.

The amount for screening ranges from Rs 1.50 per kg to Rs 6.50 per kg depending on which agency is screening the cargo.

Some airlines charge the customers only Rs 1.50 per kg and absorbing the difference in cost, sources said.

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