Lufthansa takes big risk with new rate rise policy

Lufthansap Cargo has sent out a letter to thousands of customers informing them of a 20 per cent rate rise around the globe from 1 October (see page 14 of current digital version). The letter also spells out a three euro-cents rise in security surcharges, bringing the rate to 20 euro-cents.
The dramatic rises are an indication that Lufthansa believes that the industry as a whole can absorb higher rates. However, freight forwarders have reacted with anger and incredulity at the latest statement, following a significant upward movement in rates since October 2009.
A number of forwarders have critised the move as clear signalling to other airlines. “Negotiations on rates should be discreet between the customer and vendor, not conducted in such an open and obvious way as a signal for other airlines to follow suit,” said a senior executive at a multinational freight forwarder.

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