Issue 388, February 18, 2003
The continued rise of worldwide fuel prices, driven primarily by speculation of war in Iraq, has caused the fuel index to move beyond its existing threshold, prompting most, if not all, international air carriers to announce an increase in their global fuel surcharges. A number of airlines have advised us that they will begin imposing a fuel surcharge in as little as a week, while others have pushed the implementation date out two weeks. For example, Hong Kong's Board of Airline Representatives announced just yesterday that they will increase their fuel surcharge for all air export shipments from Hong Kong effective February 21st, and American Airlines has advised us that their increase will be effective on February 24th.

Regrettably, Danzas AEI Intercontinental cannot absorb these costs and therefore must pass them on to you. Therefore, please be advised that effective February 24, 2003, the airline fuel surcharge on your air import and export cargoes will be increased to US$0.15/KG (CA$0.24/KG). (View fuel surcharge rates for U.S. domestic and Canadian northbound air cargoes.)

We of course, continue to work with our airline partners to find an alternate solution to the application of fuel surcharges. The volatility of fuel pricing justifies the need for spot market pricing rather than the application of static rates. We will continue active discussions on this matter until an equitable solution is agreed upon. In the meantime, please feel free to contact your local Danzas AEI Intercontinental representative for regular updates on the current situation.

Sincerely,

Brian Lindholm
Executive V.P. & C.O.O. North America
Danzas AEI Intercontinental

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.