08 January 2015

CLECAT comments on Emirates SkyCargo all-in rates

CLECAT has welcomed the move of Emirates SkyCargo to introduce all-in cargo rates. This will provide shippers and freight forwarders with a better picture of the full cost of shipment without the add-ons (fuel surcharges and security charges) which is a feature of the air freight industry.

Nicolette van der Jagt, Director General of CLECAT said: 'Today the issue of surcharges continues to raise questions with many shippers and freight forwarders. While we accept that air carriers offer different rate structures due to the impact of fuel prices on carriers' operating costs, surcharges are ostensibly linked to the oil price. It remains notable that carriers have shown a greater tendency to increase surcharges in line with a rising oil price than to reduce them when the oil price has fallen. What we have seen is that additional surcharges for fuel costs tend to be 'fixed' and not to fluctuate on a large scale over time. This is of particular significance as the oil price drops below $50 per barrel for the first time since 2009. The recent remarkable slide in oil prices should, by definition, lead to a corresponding reduction in fuel surcharges. CLECAT believes that the current market situation represents a perfect opportunity for creating greater transparency.'