Jet Fuel Prices Surge Amid Iran Conflict: DHL’s 1.88 Million‑Ton Strategy

Jet fuel prices double as Iran‑U.S. tensions choke the Hormuz corridor

Since the escalation of the U.S.–Iran standoff, the closure of the Strait of Hormuz has forced carriers to confront soaring jet fuel prices. Argus Media data show the benchmark kerosene price climbing from ↓ $800 per tonne to a peak of ↑ $1,903 in April, before settling around $918.

DHL’s multi‑pronged response to a 1.88 million‑ton annual demand

German logistics giant DHL Express Europe operates a fleet of 295 aircraft, serving 220 destinations and handling 248 million parcels last year. CEO Mike Parra credits three pillars for weathering the fuel shock.

• Geographic diversification of fuel purchases – sourcing from the United States, South Korea and Nigeria.
• Tankering practices that load extra fuel to avoid high‑price airports.
• Investments in sustainable aviation fuel, now accounting for ↑ 10% of the mix, with a ↑ 30% target by 2030.

“We cannot forecast volatility, but we can master the complexity around it,” Parra told Reuters.

The company’s network‑planning unit, dubbed the “central nervous system,” runs daily price analytics to decide optimal refueling points. Its proprietary VISTA tool balances payload against fuel load, trimming unnecessary weight.

To protect margins, DHL raised its fuel surcharge to a high of ↑ 48.75%, now averaging ↓ 40.75%, calculated on a monthly lag of kerosene prices.

Middle‑East security premiums and line‑haul adaptations

War‑zone deliveries trigger a security surcharge, reflecting higher aircraft insurance. In volatile zones, DHL shifts parcels to road “linehaul” networks, accepting a modest fuel penalty to keep shipments moving.

Despite the turmoil, DHL pledged over €500 million of new capital for Gulf markets, eyeing growth in Saudi Arabia, the UAE and Israel.

The lessons learned during the pandemic proved decisive. Between December 2020 and May 2021, DHL moved 440 million Pfizer doses to 92 countries, honing its crisis‑management playbook.

Employee wellbeing also entered the agenda: the firm now trains 202 mental‑health first‑aiders and runs a five‑step resilience program covering connection, activity, learning, volunteering and presence.

In a world where geopolitics can wrench supply chains, DHL’s layered strategy illustrates how a data‑driven, diversified approach can blunt the impact of volatile jet fuel prices.