News / Notice

[Air Freight Market Update] Rising Fuel Surcharges and the Growing Hedging Gap Among Airlines

Fuel Surcharges Surge on Europe Routes Amid Oil Price Volatility

Global air freight fuel surcharges (FSC) are rising sharply as international crude oil prices continue to increase. In particular, Europe-bound routes from Asia have seen a significant surge in surcharges within a short period, placing increased cost pressure on exporters and logistics planning.

Major Carriers Adjust FSC Mid-April

According to industry sources, several major airlines have implemented notable increases in fuel surcharges for Europe-bound cargo. From April 16, fuel surcharges applied by carriers such as Korean Air are expected to rise from approximately KRW 510/kg to KRW 2,190/kg. Similarly, Air France-KLM has also adjusted its FSC levels upward in the second half of April, further reflecting the overall upward trend in operating costs across the market.

Diverging Strategies: The Emerging ‘Hedging Gap’

One of the key developments behind the widening gap in FSC levels among airlines is the difference in fuel risk management strategies, particularly hedging practices. Some carriers have responded quickly to market changes by reflecting fuel cost increases directly into their surcharges. Meanwhile, other airlines with longer-term hedging programs or broader coverage have been able to mitigate the immediate impact of fuel price volatility, maintaining relatively stable FSC levels.

Market Implications for Shippers

As fuel costs remain volatile, discrepancies in FSC levels among airlines are becoming more pronounced. This creates both challenges and opportunities for shippers, as selecting the right carrier and routing can significantly impact overall logistics costs.

Our Perspective

At Prime Global Network, we continuously monitor market developments and maintain close partnerships with a wide range of carriers to secure the most suitable options for our customers. In times of rapid market fluctuation, our focus is on providing flexible routing solutions, optimizing cost efficiency, and ensuring stable operations through proactive communication and experienced handling. We remain committed to supporting our customers with reliable and competitive logistics solutions, even in uncertain market conditions.