Cargo shipments turn costlier as UAE operators raise rates over surging fuel costs

Cargo shipments turn costlier as UAE operators raise rates over surging fuel costs

Dubai: Sending shipments into and out of the UAE will cost more with cargo operators planning to hike rates in response to the surge in fuel prices, with oil at around $110 a barrel. The ongoing Russia-Ukraine conflict has pushed jet fuel prices to over $140 a barrel and operators are feeling the pinch. “Whatever the corresponding cost increase is, it will definitely get passed on to the customer,” said Harish Kumar, General Manager at Allcargo Logistics. The operator hiked its freight charges by 5-10 cents per kilogram and that could go up to 15-20 cents if high oil prices are to stay.” Atlas Cargo, which ships extensively to the Philippines, charges about Dh14 per kg. The company raised rates in December and there will be further hikes. Emirates Skycargo, the cargo unit of the Dubai-based airline, will increase its fuel surcharge if prices continue their upward trajectory. Emirates SkyCargo, like many other airlines, adjusts its fuel surcharge according to a Fuel Surcharge Index. The Index, which is based on the average price of aviation fuel in five key spot markets, has reached 217 points. Currently, the freight operator charges 27 cents per kg (Dh1) as fuel surcharge for short-haul