Since the start of the U.S.-Iran conflict, jet fuel prices have more than doubled, peaking at $1,903 per tonne in April before settling at $918 per tonne, according to Argus Media. German delivery giant DHL, operating one of Europe’s largest aircraft fleets with 295 planes, has faced significant cost pressures due to this surge. DHL Express Europe’s CEO, Mike Parra, detailed how the company has managed to secure kerosene supplies through the summer despite these challenges, as reported by fortune.com.
DHL’s strategy to counter the jet fuel crisis includes three main elements. First, the company diversified its fuel procurement markets, increasing purchases from the U.S., South Korea, and Nigeria. Second, DHL employed tankering—loading aircraft with extra fuel to avoid refueling at costlier destinations. This approach has helped the company maintain cost efficiency while ensuring uninterrupted air freight operations across its network of 220 countries. Parra emphasized that this diversified approach was crucial to navigating the volatile fuel market.
The jet fuel price spike has disrupted global supply chains, especially for air freight operators like DHL that consume 1.88 million tonnes annually. The company’s ability to adapt contrasts with others struggling to secure affordable fuel amid the closure of key shipping lanes such as the Strait of Hormuz. DHL’s extensive fleet and global reach underscore the scale of the impact, with 248 million shipments delivered worldwide last year. This situation highlights the broader challenges logistics firms face in maintaining operations during geopolitical tensions affecting energy markets.
DHL Express Europe’s fleet of 295 aircraft continues to operate globally, with the company securing kerosene supplies through diversified sourcing and tankering strategies. Mike Parra’s remarks to fortune.com underscore that these measures have allowed DHL to sustain its air freight services despite jet fuel prices remaining elevated at $918 per tonne.