Air cargo carriers levy ‘security’ and ‘war risk’ surcharges

TORONTO (Oct. 11, 2001) — Saying they need to pay for tighter security measures, major air cargo carriers have started to levy “security surcharges” on both domestic and international freight.

Starting Oct.15, Air Canada will charge 15 cents per kilogram on all cargo originating in Canada, with a minimum $15. In the United States, the fee is 10 cents US per kilogram, with a $10 US minimum, and in Europe, 0.15 Euros per kilogram, with no minimum fee. The airline will apply the surcharge at the point of origin, regardless of the destination.

American Airlines Cargo will levy a $23 handling surcharge on every transborder shipment starting Oct. 15. China Airlines began imposing what it calls a “war risk” surcharge on all air cargo originating in Taiwan, as of Oct. 1. KLM Cargo and Lufthansa Group announced similar measures for international freight.

The surcharges coincide with cuts to flight schedules, which has resulted in reduced cargo capacity.

Meantime, ocean carriers began charging a temporary “additional risk surcharge” to all eastbound and westbound cargo on bills of lading dated on or after Oct. 1.