Air transport: Air France-KLM Cargo raises freight rates due to the risk of war
The Air France-KLM Group has announced an increase in its ‘war risk’ surcharge (code XD), against the backdrop of a rapidly deteriorating situation in the Middle East. The increase is justified by a greater-than-expected ‘operational impact’.
On 9 March, Air France-KLM announced to its customers that it would be introducing a war surcharge (code OC: XD) from 24 March. Even before this came into effect, the group announced that the surcharge remains in place but that an increase is planned from… 25 March! This higher rate therefore applies immediately to all shipments and across a revised scope; in short, whilst it was initially intended for certain routes, it now applies to all destinations. The increase is justified by the growing impact of geopolitical tensions on air operations, namely “increased flight diversions, fuel price volatility and rising aviation-related costs, which significantly affect the cost of maintaining the network and the reliability of schedules”.
In practical terms, for businesses in Saint Martin, this will cost €0.10 per kilo for goods carried on passenger flights and €0.45 per kilo for those arriving by cargo aircraft.
The group states that this surcharge is temporary and directly linked to the current situation. It will be monitored regularly and may be adjusted depending on how the situation develops.
Air France-KLM’s management concludes its letter with sincere thanks, asks for its customers’ understanding and hopes to retain their trust… but on an island territory entirely dependent on imports, do we really have a choice?
There is no point in making grand speeches about tackling the cost of living if, at the same time, we take back with one hand what we have granted with the other. Having watched prices soar through successive crises, one is justified in asking: are these increases really linked to events on the other side of the world… or are they simply a case of profiteering?
