DHL Express Implements Surcharge: DHL Express announced plans to introduce a peak season surcharge starting September 15, as discussed during an August 1 earnings call. This surcharge will vary depending on the shipment’s trade lane, with the highest volumes expected from Asia, though with variations across different lanes, according to DHL Group CFO Melanie Kreis.
Seasonal Challenges and Market Dynamics: “Seasonality has become more intense over the past year,” Kreis noted, emphasizing the increased complexity in the aviation sector due to the growing presence of Chinese e-commerce players and capacity constraints out of China and Asia as a whole.
Kreis clarified that the surcharge isn’t specifically aimed at Chinese e-commerce companies but reflects broader market developments. She mentioned that while China-based e-commerce businesses currently use only a small portion of the services from major integrators like DHL, the dynamic they create in the market is a significant factor driving the surcharge.
The growing demand from Chinese e-commerce giants has exacerbated the challenges of securing additional capacity, which is becoming increasingly difficult.
The air cargo industry is preparing for a busy fourth quarter, with e-commerce demand from companies like Shein and Temu expected to consume significant capacity and push up air freight rates, as highlighted in a July report by Xeneta. Anticipated capacity constraints have led some forwarders, such as Dimerco Express Group, to introduce weekly air charter services to manage peak season volumes.
Niall van de Wouw, Xeneta’s Chief Airfreight Officer, mentioned in the July report that some airlines and forwarders were already considering implementing peak season surcharges by the end of August. UPS has also announced similar surcharges due to a shorter holiday shipping window and expected volume increases, and FedEx is anticipated to follow suit soon.
