Air France Cargo-KLM Cargo is set to introduce a new cargo fuel surcharge mechanism on Asia-Europe and all other international routes from September in a bid to quell shipper/forwarder concern over alleged unfairness in the current general industry system.

Key features will include charging according to the length of flight, partially incorporating that charge into the basic freight rate and using the US dollar as the base currency but with conversions into other currencies.

Effective September 1, explained Air France-KLM Cargo executives, the organisation's cargo fuel surcharges would based on a zonal system, "thereby taking into account respective fuel-burning patterns". There would be different levels for long inter-continental flights (over nine hours), for example Paris-Hong Kong; other inter-continental (four-nine hours); and short-haul (under four hours). Future fuel surcharges would be applied to those three categories in ratios of 100 percent, 80 percent and 50 percent, respectively.

The group's existing fuel surcharge would also in many cases be partly incorporated into freight rates. While the current general surcharge of $1.30 per kilo would still be applied 100 percent as a surcharge for cargo moved on long inter-continental routes, it would be split 80/20 surcharge/freight rate for other inter-continental movements (fuel surcharge $1.04/ freight rate $0.26) and 50/50 for short-haul movements (fuel surcharge $0.65/freight rate $0.65). Future fuel surcharge increases/decreases would be applied fully as surcharges and not incorporated in the basic freight rate.

For shipments priced in other currencies, the fuel surcharge will be converted into that currency, based on the exchange rate with the US dollar.