{"id":2629,"date":"2026-07-01T20:20:18","date_gmt":"2026-07-01T20:20:18","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=2629"},"modified":"2026-07-01T20:20:18","modified_gmt":"2026-07-01T20:20:18","slug":"the-iran-conflict-saw-jet-fuel-prices-soar-when-you-use-1-88-million-tonnes-a-year-how-you-respond-really-matters-just-ask-dhl","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=2629","title":{"rendered":"The Iran conflict saw jet fuel prices soar\u2014when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL)"},"content":{"rendered":"
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Jet fuel became a particularly expensive commodity, more than doubling in price from $800 per tonne prior to the conflict to a peak of $1,903 in April. The current price of kerosene stands at $918 per tonne, according to latest figures from Argus Media and airlines have had to scramble to secure fuel supplies.\u00a0<\/p>\n

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Among the companies feeling the pressure is German delivery company DHL, whose extensive air freight operations make it particularly exposed to disruptions in air fuel supplies. DHL Express Europe, its international shipment division,\u00a0operates\u00a0one of Europe\u2019s largest\u00a0aircraft\u00a0fleets. Its 295 planes, which include\u00a0third-party\u00a0aircraft\u00a0and charters, ship packages to 220 countries and delivered 248 million shipments worldwide last year.\u00a0<\/p>\n

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Its European CEO, Mike Parra, says that DHL\u2019s diversified approach has helped the company navigate the fuel crisis and secure its kerosene supplies through the summer months.\u00a0\u00a0<\/p>\n

There have been three key elements of the\u00a0strategy. Firstly,\u00a0DHL\u00a0has diversified the markets where it\u00a0purchases\u00a0fuel, with the U.S., South Korea and Nigeria increasing their air fuel production. \u00a0\u00a0<\/p>\n

Tankering\u2014where\u00a0aircraft\u00a0are intentionally loaded with extra fuel to avoid the need to refuel at a destination where prices are higher\u2014has also allowed DHL Express to be more cost-effective in its operations.\u00a0<\/p>\n

And lastly,\u00a0it\u2019s\u00a0built up its\u00a0sustainable fuel supply. DHL Express is one of the largest purchasers of\u00a0sustainable aviation fuel, which is derived from waste\u00a0and residue oils and fats. One-tenth of its air fuel is\u00a0sustainable\u00a0and it has set a target for 30% to be\u00a0sustainable by 2030.\u00a0\u00a0<\/p>\n

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DHL Express\u2019s network planning team, which Parra describes as the \u201ccentral nervous system of the business\u201d,\u00a0has been essential for implementing this strategy. \u201cOur experts\u00a0analyze\u00a0fuel prices and decide where\u2019s best to fuel our planes,\u201d Parra says. \u201cFlying planes full of fuel also takes a hit on your payload, so there are a lot of calculations to manage.\u201d\u00a0<\/p>\n

Its internal shipment tool VISTA also helps employees review the weight and balance of DHL Express\u2019s\u00a0aircraft, allowing them to work out the most cost-effective and efficient routes. \u201cWe\u2019re tuned into everything and we\u2019re watching everything,\u201d Parra adds. \u201cThat\u2019s our responsibility as a global business.\u201d\u00a0<\/p>\n

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While DHL Express has\u00a0sought\u00a0to keep prices competitive, it has had to increase its fuel surcharge for air shipments\u00a0in order to\u00a0maintain\u00a0margins. The surcharge\u2014which is used to offset spikes in fuel costs and is calculated on the average daily price of kerosene\u2014peaked at 48.75%\u00a0and currently stands at 40.75%. \u201cIt\u2019s not a mechanism to make money, it\u2019s a mechanism to protect costs,\u201d Parra explains.\u00a0<\/p>\n

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The surcharge is now updated on a weekly basis and is calculated on a monthly lag to account for the\u00a0frequent rise\u00a0and fall\u00a0in fuel costs. Historically, this was based on prices over an eight-week period and was updated monthly.\u00a0<\/p>\n

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Fluctuating fuel costs are not the only challenge facing the\u00a0logistics\u00a0company. Conflict in the Middle East has also had a direct impact on the business.\u00a0\u00a0<\/p>\n

A security risk surcharge has been introduced for deliveries into war-impacted areas, such as Israel and Lebanon, to offset the increased\u00a0aircraft\u00a0insurance prices. \u201cWe are having to land fuel, turn around, and get out, because you don\u2019t want to have an asset sitting idle there,\u201d Parra says.\u00a0<\/p>\n

DHL Express has also implemented road\u00a0\u201clinehaul\u201d\u00a0routes in the Middle East, where trucks and vans distribute packages to territories where it is not safe to land a plane. \u201cThat may require using a little bit more fuel or adding a little more complexity,\u201d Parra adds. \u201cBut it meant we were quick to bounce back as a company.\u201d\u00a0\u00a0<\/p>\n

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Despite the current conflict in the Middle East and the increased challenge this brings, DHL Express\u00a0remains\u00a0committed to the region. Last year, it announced plans to invest more than \u20ac500 million in the Middle East, with a focus on the Gulf markets of Saudi Arabia and the UAE.\u00a0\u00a0<\/p>\n

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\u201cWe\u2019re well-positioned, we\u2019re committed, and we\u2019ve made big investments in the Middle East,\u201d Parra says. \u201cIsrael is a strong market for us, and one that I\u2019m sure we will continue to see growth in.\u201d\u00a0<\/p>\n

Parra says that adapting to complexity has become a \u201csecond-hand\u00a0skill\u201d for the business after its operations were tested during the pandemic.\u00a0\u00a0<\/p>\n

\u201cCOVID was by far a bigger challenge because of the health and safety risks to employees and the overnight boom in e-commerce,\u201d he says. \u201cWe were also the biggest transporters of vaccines and had to work with governments and organize escorts after our planes landed.\u201d\u00a0<\/p>\n

Between December 2020 and May 2021, DHL helped distribute 440 million Pfizer vaccines to 92 countries. \u201cCOVID taught us a lot,\u201d he adds. \u201cWe got really good at managing the complexity.\u201d\u00a0<\/p>\n

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The\u00a0additional\u00a0investment in facilities and road transportation DHL Express made during the pandemic has helped put the business in good stead for navigating the current geopolitical uncertainty.\u00a0\u00a0<\/p>\n

The heightened uncertainty is also\u00a0affecting\u00a0DHL Express\u2019s workforce. Parra has noticed more staff mentioning personal challenges during one-to-one meetings or in coaching sessions.\u00a0\u00a0<\/p>\n

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\u201cPeople said they were going through challenges at home or were being\u00a0impacted\u00a0by the crises going on or prices increasing. The U.K. is not a cheap place, as you know, and people are worried,\u201d he says.\u00a0<\/p>\n

In response, DHL Express has increased the number of staff trained in mental health first-aid \u2014it now has 202 mental health first-aiders\u2014and implemented a five-step wellbeing strategy.\u00a0\u00a0<\/p>\n

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The key elements of this strategy are connection, staying active, learning, giving and being present. In practice, this involves building a supportive employee culture, promoting physical activity, offering volunteering\u00a0initiatives\u00a0and encouraging people to look out for others and prioritize safety.\u00a0<\/p>\n

\u201cWellbeing is a topic that is growing in importance\u2014and not just internally\u2014so we\u2019re investing in it,\u201d Parra says.\u00a0<\/p>\n

While supply chain shocks, geopolitical fallouts, and conflict are hard to predict, businesses can control how well they prepare, build\u00a0resilience\u00a0and adapt. As Parra says: \u201cWe can\u2019t predict the\u00a0volatility,\u00a0but we can manage the complexity that goes around it.\u201d\u00a0<\/p>\n

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As jet fuel prices doubled, DHL Express has diversified supplies, rerouted aircraft and shifted to sustainable alternatives to keep its 295 planes delivering <\/p>\n","protected":false},"author":1,"featured_media":2628,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[367],"tags":[],"class_list":["post-2629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation"],"yoast_head":"\nThe Iran conflict saw jet fuel prices soar\u2014when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL) - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=2629\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Iran conflict saw jet fuel prices soar\u2014when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL) - 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