Fuel Surcharge Hikes Hurting Everyone Across the Board

Hong Kong - Fuel surcharge hikes are affecting the freight forwarding
industry, factories and buyers especially over these two months as there has
been an increase in the surcharge every two weeks, according to Steven Chiu
of China based Aeroceanetwork member Shanghai Rijin Top Express.

"To avoid our own losses, we should pass on the increases to shipper or
consignee accordingly, but sometimes we can't increase this rate and our
profit margins are decreased," said the executive of Aeroceanetwork - a
non-exclusive major industry network for professional logistics companies
and international freight forwarders.

Although this was having an overall negative impact on the forwarders'
business, they would survive it, Stephen Yau, managing director of Trek
Logistics, in Hong Kong said.

"In a way, it is just a nuisance but forwarders must go about as if it were
'business as usual'. There is no difference (to forwarders) if customers
choose airfreight or sea freight, or switch any cargo from airfreight
traffic to sea-air or ocean traffic," Yau said. "The principles are subject
to market conditions and the expenses incurred will need to compare between
the said routing."
 

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