South African delivery company The Courier Guy will introduce a temporary fuel surcharge for customers shipping parcels by air after airlines raised their ticket prices this week. The surcharge is a direct result of the 70% increase in jet fuel costs, which has been felt globally due to the Iran conflict and the closure of the Strait of Hormuz.
International courier company DHL has also announced that it will be applying fuel surcharges in line with changes in fuel prices in the market. According to a DHL spokesperson, the situation in the Middle East has led to increased complexity in global logistics operations, with longer routes, alternative gateways and additional operational measures required in some cases.
Fuel Price Increases
Airlines, including South African Airways, Airlink and FlySafair, have hiked ticket prices after jet fuel costs rose by 70% week-on-week. Sharp increases in jet fuel costs have been felt globally because of the Iran conflict and the closure of the Strait of Hormuz, which accounts for one-fifth of global oil supply. Oil alone has risen to more than $100 a barrel, while jet fuel has outpaced oil and doubled since the conflict began, according to Reuters.
Impact on Consumers
Concerns have been raised globally about fuel supply, while local suppliers are starting to limit deliveries to contract volumes. Airlines have said there is no immediate concern of jet fuel shortages in SA. However, Airlink said there were concerns about how much stock would be available beyond April.
Speaking to LLD News, CEO of South African Express Parcel Association (SAEPA), Garry Marshall, said it would be a rough ride for consumers for a while, amid rising fuel costs for both air and road freight and conflict in the region. He said that costs for road freight would also be hit hard by fuel increases in April.
- The Courier Guy will introduce a temporary fuel surcharge for air parcels
- DHL will apply fuel surcharges in line with changes in fuel prices
- Airlines have hiked ticket prices due to 70% increase in jet fuel costs
The situation is being closely monitored by the industry, and consumers can expect to see increased prices for air and road freight in the coming months.
