Following the decline experienced as from the month of September in international bunker fuel prices, and although prices are still considered as relatively high, most shipping lines has recently reduced their BAF surcharges same as in the airline industry have been implemented reductions or complete provisional suspension of fuel surcharges on a worldwide basis.

By suspending the surcharge, transport companies are honoring the pledge it gave to customers when the surcharge was first introduced, a process, which governs the introduction and raising of the fuel surcharge as well as its reduction or complete withdrawal on the basis of a fuel price index. Fuel costs are a critical market factor and a considerable valuable cost.

For the air industry, worldwide spot prices are based on kerosene-type jet fuel as published by the Energy Information Administration of the U.S. Government, EIA and in the shipping business it is usual to consider base FO (Fuel Oil) MDO (Marine Diesel Oil) at Rotterdam spot bunker prices.

Swisscargo has decided to fully suspend the fuel surcharge on its entire route network with effect of January 1, 2002.

United Cargo, the Cargo Division of United Airlines announced that effective January 1, 2002 the fuel surcharge will be reduced from US$0.15/kg to US$0.10/kg internationally.

Lufthansa Cargo lifts fuel surcharge of 0.10 euros suspended with effect from December 20, 2001

British Airways World Cargo announced that it will remove its £0.06p/kilo [or local equivalent] fuel surcharge worldwide with effect from 23rd December 2001, subject to any local governing authority approvals.

UPS announced it will lower its current fuel surcharge (implemented in August 2000) for customers worldwide by 40 percent - from 1.25 percent to 0.75 percent -as from next Dec. 10 and will remain in place at least until Feb. 3, 2002. After Feb. 3, adjustments will take effect on the first Monday of each month and will be based on the U.S. Energy Department's On-Highway Diesel Fuel Prices.

DHL Worldwide Express, announced a one percent decrease in the company's fuel surcharge, effective December 2, 2001. This will lower its fuel surcharge to three percent.

On the maritime shipping industry also most shipping lines and conferences are reducing BAF surcharges.