Swiss WorldCargo and
Lufthansa Cargo
are to launch a two component pricing structure - a net rate plus
airfreight surcharge – to reflect the "volatility of external cost
factors".
A joint letter to customers states: “The new airfreight surcharge
will be significantly lower compared to the combined fuel and security
surcharges, which will be eliminated with the start of the winter flight
schedule.
“As the surcharge level will be decreased, the change in the pricing
structure will subsequently lead to a re-aligned and increased net rate
that will reflect the real value of our service in an adequate way.
Overall prices of transportation will remain at current levels.”
In countries that are subject to state regulation, such as Japan and
Hong Kong, the airlines will retain the current surcharge structure.
Customers will be informed about the applicable airfreight surcharge levels in individual countries in a separate email.
The pricing structure is not an all-in rates offer, as first
introduced by Emirates SkyCargo in January this year, a move that
prompted several airlines, including Qatar Airlines and IAG Cargo, to
introduce similar pricing structures.
The airfreight surcharge will be adjusted “whenever one of these
external cost factors changes significantly and thus will display
necessary price adjustments in a transparent way”.
The airlines added: “This would not have been the case with an all-in
rate, which we also investigated in detail. An all-in rate would have
required a less transparent adjustment mechanism in the event of
significant fluctuations in costs beyond our control.”
The letter is from SwissWorld Cargo’s Chief Cargo Officer, Oliver
Evans, and Alexis von Hoensbroech, Lufthansa Cargo board member
responsible for product and sales.
It continues: “Pricing structure has been the most dominating
discussion in our industry in the recent past. Market developments have
shown that we need to continue working on our pricing system in order to
remain agile and sustainable in the future.
“We have been listening closely to you, our customers, who have been
demanding a new and comprehensive pricing concept, to meet your needs
and fulfill our own business requirements.”
The letter adds: “The new, market oriented airfreight surcharge
reflects the volatility of external cost factors, such as fuel, exchange
rates, flight dependent cost such as airport charges and fees, which
are beyond our control.
“As in the past, we aim to be a straightforward business partner for
you. The new re-aligned surcharge will allow us to largely avoid special
processes such as negative rates and thereby shorten our transaction
and response times to you."
It continues: “Our talks have shown that both reliable planning and
flexibility are becoming increasingly important to you and your
customers.
“For an insurance add-on, we will offer you the option of securing
stable total rates for certain types of long-term contracts. We will
also offer you more opportunities to sign long-term contracts with us
whenever your or your customers’ needs arise for such contracts, and
even when they extend beyond a single season.”
Source : http://www.aircargonews.net/news/airlines/single-view/news/swiss-and-lufthansa-to-launch-new-cargo-pricing-structure.html
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