Our new pricing system.
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.
Today we are pleased to announce that as of the upcoming winter flight schedule 2015/2016 we will be introducing a new, pragmatic and simplified pricing system.
In the future, Lufthansa Cargo’s and Swiss WorldCargo’s pricing structure will consist of two components: a net rate plus an Airfreight Surcharge. 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. Overall prices of transportation will remain at current levels. In countries that are subject to state regulation e.g. Japan and Hong Kong we will retain the current surcharge structure.
We will inform you, our customers, about the applicable Airfreight Surcharge levels in the individual countries in a separate eMail.
The new, market oriented Airfreight Surcharge reflects the volatility of external cost factors such as fuel, exchange rates, flight dependent costs such as airport charges and fees, which are beyond our control. 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. This would not have been the case with an all-in rate, which we also looked into in detail.
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.
Our talks have shown that both reliable planning and flexibility are becoming increasingly important to you and your customers. For a risk 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 you or your customers’ needs arise for such contracts, and even when they extend beyond a single season. Please get in touch with your usual Lufthansa Cargo or Swiss WorldCargo representative who will be happy to assist you.
We look forward to continuing to work with you in the future in a business relationship built on trust and partnership. If you have any questions, please feel free to contact us at any time.