Photo = Korean Air

 

 

[Alpha Biz= Paul Lee] Korean Air has raised its international cargo fuel surcharge to the highest level on record, driven by sustained high oil prices amid escalating tensions in the Middle East.

According to industry sources on May 6, Korean Air’s fuel surcharge for international cargo departing from Korea will increase from the current Level 34 to Level 35—the highest tier for the first time—starting mid-May.

Under the new rate, fuel surcharges will rise to KRW 2,020 per kg for short-haul routes, KRW 2,120 for medium-haul routes, and KRW 2,260 for long-haul routes, marking an increase of KRW 60–70 per kg. The revised rates will be applied from May 16 through June 15.

Currently, for the period from April 16 to May 15, the surcharge stands at KRW 1,960 per kg for short-haul, KRW 2,060 for medium-haul, and KRW 2,190 for long-haul routes.

Cargo fuel surcharges are typically determined based on the average Singapore jet fuel price (MOPS) from the first to the last day of the previous month and are structured into 35 tiers.

The MOPS benchmark rose from 465.24 cents per gallon (USD 195.40 per barrel) in March to 477.20 cents per gallon (USD 200.42 per barrel) in April.

The sharp increase in fuel surcharges is expected to add to the cost burden for exporters, as air cargo rates are composed of base freight charges, fuel surcharges, and security fees.

 

 

 

 

AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)