Courier industry reels under high oil price; costs rise 30%

Mumbai: While the plight of the airline passengers is well known, there is another segment that is reeling under the surge of oil prices - the express and courier industry. More bad news coming their way, the airlines have further increased charges by Re 1 per kg taking the total hike to Rs 6 per kg in the last two months. Bearing the brunt of high oil prices, the overall costs incurred by domestic couriers have increased between 22 and 25 per cent. In some cases, the companies are saying the costs have gone up to as high as 30 per cent.
"We have been subject to a double hit by the rise in oil prices.
On the one hand, with the skyrocketing aviation turbine fuel prices, the airlines increased charges and then the hike in petrol and diesel prices of Rs 5 and Rs 3 respectively has directly hit our local business which uses road transport,” said Mr R.K. Saboo, Deputy Managing Director, First Flight Couriers Pvt Ltd and Chairman, Express Industry Council of India, the organisation representing a cross section of members drawn from international and domestic express companies.
Another major domestic express player DTDC said that the company has absorbed 50 per cent of the hike and another 50 per cent has been passed on to the customer as fuel surcharge.
Blue Dart in a statement last month said owing to rising input costs, price hike in ground will be in the region of 10-15 per cent, while on air it would be in the range of 15-20 per cent.
21/07/08 Shubhra Tandon/Business Line

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Categories: Cargo Jul 2008