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Danzas AEI Intercontinental Proposes Fresh Approach to Calculating Airline Fuel Charges

Solution Seen As Equitable For Shippers, Carriers and Forwarders; Eliminates Problem of 'Static' Surcharges Imposed by Airlines

Darien, CT (April 29, 2002) -- Danzas AEI Intercontinental, the world's leading air freight forwarder, and Business Unit of the Danzas Group, today unveiled a proposal it believes will equitably resolve an on-going dispute over the way the world's airlines impose and enforce freight surcharges based on the price of oil and the cost of jet fuel.

The proposal, which will be distributed to a number of airlines, contains two key elements:

Carrier-imposed fuel charges would be determined by prices set on the spot market and which are adjusted monthly. Danzas AEI Intercontinental has suggested using an index pegged to the per-gallon spot price of U.S. Gulf Coast jet fuel. The index is updated monthly by the U.S. Department of Energy, which publishes the price-in U.S. currency-on the first business Monday of each month.

Based on a spot pricing formula, air cargo users would agree to pay costs equal to a percentage of their total expenditures with each carrier. For example, if the spot price for a given month was quoted between 96 cents and $1.00 per gallon, a carrier could impose a charge equal to 6% of a customer's total expenditures with that carrier. Conversely, if the price fell to between 71 and 75 cents a gallon when the index was recalculated the following month, the carrier's charge would be limited to 1% of the customer's total spending. So-called accessorial charges, such as security surcharges imposed following the September 11 terrorist attacks and still in effect, would not be included in determining a user's spending levels with a carrier.

"Fuel pricing is a dynamic exercise, not a static one. We believe our proposal reflects that reality," said Brian Lindholm, executive vice president and chief operating officer, North America, Danzas AEI Intercontinental. "Basing surcharge levels on real-time market prices is the most equitable solution for all concerned. It provides a mechanism for airlines to recover their costs should fuel prices spike, and it provides timely relief for companies like ours, and for our customers, once upward price pressures abate."

Danzas AEI Intercontinental began drafting its proposal after being notified by its airline partners of a new round of fuel surcharges that took effect April 15. The surcharges, which have been applied to all import, export and domestic air shipments, were reluctantly passed on to Danzas AEI Intercontinental's customers. Shippers and forwarders have long been concerned over airline policies of imposing fuel surcharges that stay in place even after fuel prices have declined.

Commenting on the Danzas AEI Intercontinental proposal, Joe Hughes, Caribbean and Latin American senior logistics manager, Lucent Technologies, said, "this is a logical solution to a persistent problem. It recognizes the fact that while airlines are entitled to recover their costs from higher fuel prices, their charges should be pegged to monthly price fluctuations and not reflected as a flat 'surcharge' that seems to stay in effect long after market prices have fallen."

Logistics. Worldwide. With a strong presence on every continent, the Danzas Group is the world's leading provider of IT-supported logistics solutions. Outstanding strengths in innovative customized solutions, worldwide air and ocean freight, global project forwarding, European overland transport, e-business and 4th party logistics enable Danzas to offer real one-stop shopping. Based in Basel, Switzerland, Danzas belongs to Deutsche Post World Net.

For further information please contact:
Candace Bouchard
Manager of Corporate Communications, North America
Tel: +1 203 655 5792
Fax: +1 203 655 5895
Candace.Bouchard@dhl.com