Beginning soon, Emirates will introduce a new pricing structure, terminating the split of rates based on weight or volumes, fuel and security surcharges.
This could be a trail blazing decision motivating other cargo carriers to follow EK SkyCargo’s move. In a letter to their clients dated December 31, the Dubai-based carrier announced the
introduction of a new pricing system. It consists of a combination of weight related rates and the current fuel and security surcharge. These new all-in tariffs will be first implemented on
flights to and from Europe beginning February 1, and becoming effective for the rest of SkyCargo’s global network from 1st March 2015.
“We believe that this new structure will be simpler and is a positive development in the way tariffs are applied,” states the carrier.
Thus, Emirates goes back to the old days when fuel and security charges were an integral part of the rates. This ended years ago when oil prices went through the roof and carriers decided to differentiate their pricing system by separating charges for fuel and also security, which became increasingly costly after 9/11, from their rates per kilogram.
It can be presumed that EK Cargo’s intended step is music in the ears of most forwarders since their commission is based on rates, but excludes any forms of surcharges. Therefore, all-in rates will enable them getting a bigger slice of the pie – at least when using EK SkyCargo for uplifting their shipments.