Jet fuel prices have surged 35% since July, leading Asian airlines to increase cargo surcharges significantly, according to S&P Global.
Global jet fuel prices have risen 35 per cent since early July, prompting Asian airlines to sharply increase cargo fuel surcharges, reports London's S&P Global.
The collapse of US-Iran peace talks reversed a two-month decline in fuel prices. Analysts at HSBC stated that renewed Middle East conflict is likely to support air freight rates as shippers divert high-value cargo from ocean routes through Hormuz and the Red Sea.
The Jet Fuel Price Index compiled by S&P Global Platts showed average global refinery prices at US$160.06 per barrel in the week ending July 24, up from US$119.13 in the first week of July. Airlines are now reviewing surcharges every two weeks.
Cathay Pacific will raise long-haul cargo surcharges by 50 per cent from August 1 to HK$10.10 ($1.31) per kilogram, with similar increases for medium- and short-haul flights. The carrier indicated that this was the first rise since April, following reductions in May and June.
Taiwan's EVA Air will lift its long-haul surcharge by 20 per cent to $1.29/kg from August 1. All Nippon Airways and Japan Airlines have also announced increases, while Korean Air will cut surcharges for a third consecutive month after semiconductor demand boosted cargo revenue by 46 per cent year-on-year.
