newstodate.aero
Aug 07, 2015 (newstodate): Lufthansa Cargo and Swiss WorldCargo have announced the implementation of a new pricing system from this autumn.
Instead of the current calculations of airfreight rate and a variety of surcharges, the two carriers will offer a structure comprising a cargo net rate and an airfreight surcharge, with the latter to replace the current security, fuel and other surcharges.
The two carriers claim that their new system is more transparent than an all-in rate.
Airfreight forwarders do not necessarily agree.
-I cannot see how this would be more "transparent" at all, says Kim Brodersen, Scan Global Logistics VP.
-At some point airlines noted that fuel prices were significantly down, and this would lead to lower fuel surcharges. We cannot know if airline cargo companies actually pay a fuel surcharge to their mother carriers for use of the cargo capacity. But airlines have undoubtedly made money on this fuel surcharge, and profits have now lowered as the fuel parameter dropped.
-Today, the fuel surcharge has overtaken the airfreight rate to many destinations. I will not argue if the cargo rate has been too low or the total price has been too high, this is eventually decided on the market place.
-But to launch this new pricing structure by claiming that the introduction of this "buffer button" will enhance transparency by just naming it "surcharges" is totally beyond understanding, says Mr Brodersen.
Instead of the current calculations of airfreight rate and a variety of surcharges, the two carriers will offer a structure comprising a cargo net rate and an airfreight surcharge, with the latter to replace the current security, fuel and other surcharges.
The two carriers claim that their new system is more transparent than an all-in rate.
Airfreight forwarders do not necessarily agree.
-I cannot see how this would be more "transparent" at all, says Kim Brodersen, Scan Global Logistics VP.
-At some point airlines noted that fuel prices were significantly down, and this would lead to lower fuel surcharges. We cannot know if airline cargo companies actually pay a fuel surcharge to their mother carriers for use of the cargo capacity. But airlines have undoubtedly made money on this fuel surcharge, and profits have now lowered as the fuel parameter dropped.
-Today, the fuel surcharge has overtaken the airfreight rate to many destinations. I will not argue if the cargo rate has been too low or the total price has been too high, this is eventually decided on the market place.
-But to launch this new pricing structure by claiming that the introduction of this "buffer button" will enhance transparency by just naming it "surcharges" is totally beyond understanding, says Mr Brodersen.