In response to the ongoing rise in aviation fuel prices, UPS has announced an increase in shipping tariffs for specific routes, ranging from 2% to 5%. This price adjustment follows the continuous rise in fuel costs, which has had a direct impact on international shipments. As a result, courier companies have had to revise their existing rates to cope with the increased operational expenses.
Giorgi Kopilashvili, the Executive Director of the authorized UPS contractor in Georgia, explained that, in some cases, the company was forced to implement price hikes. Despite efforts to maintain the old rates, UPS had to make these adjustments to account for the rising fuel costs. According to Kopilashvili, the shipping tariffs for specific routes have been increased by as much as 5%, with the lowest increase being around 2%.
Shipping costs are determined by two main factors: the base tariff and the fuel surcharge, which is directly linked to the increase in aviation fuel prices. UPS typically sets the base tariff once a year and adjusts the fuel surcharge accordingly. The company has been striving to minimize the impact of these adjustments on customers, and in most cases, the overall service fees have only slightly increased for some clients. "While we have not fundamentally changed the rates, we are making very slight increases for certain customers, depending on the route," Kopilashvili added.
The rising costs have been attributed to the steady climb in global aviation fuel prices. According to the International Air Transport Association (IATA), aviation fuel prices have surged by 7% compared to the previous week, reaching an average of $209 per barrel. Year-on-year, the increase exceeds 130%. Fuel prices vary by region, with the highest prices currently observed in Europe and Asia, reflecting the ongoing global energy crisis.
