Freight Forwarding companies worldwide have united together in frustration and anger to the shocking changes to the way airlines calculate fuel and security surcharges. By implementing this sudden rate rise that has secretively been implemented as surcharges, which the entire freight forwarding fraternity chain could see through it within seconds, has brought freight forwarding companies together and created what could cause severe implications for the future.
Hundreds of freight forwarding companies around the world have sent their opinions to various shipping bodies to be voiced.
A number of the worlds leading airfreight carriers according to a trusted source have after years of aligning surcharges using actual weight as the method, elected to suddenly, without notice change to using chargeable weight as the basis.
It is remarkable that after such a long time all of these carriers have independently elected to change at the same time – what a coincidence.
Basically, this move will severely punish shippers of lower density, higher volumetric cargo whilst providing extra revenue for the carriers.
This move is so illogical and counter intuitive that even the airlines themselves are struggling to justify it rationally to freight forwarding companies. Fuel burn of an aircraft is affected by weight, not by a virtual volumetric weight. In face an aircraft full of less dense cargo will burn far less fuel than on e full of denser cargo.
The airlines already have a mechanism to increase their revenues as they need to – it is called the rate. This is the method freight forwarding companies use to calculate airfreight shipments.
Chargeable weight calculations take into account the extra volume of the shipment and are, per kgs, charged more than denser cargos. The reason the airlines have elected to change the surcharges is to raise extra revenue, which they hoped would be less transparent to freight forwarding companies rather than increasing the actual rate per kgs.