Cathay Pacific (CX) & HK Express (UO) Cargo Surcharge Adjustment Notice April 2026

1. Introduction

Recently, the China Cargo Department of Cathay Pacific (CX) and Hong Kong Express (UO) issued an official notice. Starting from April 16, 2026, a structural adjustment will be implemented on the Fuel Surcharge for cargo exported from Mainland China, while the War Risk Insurance Surcharge (MWC) will remain unchanged. The core of this adjustment is the restructuring of fuel surcharge zones, with the addition of a new Medium Haul zone. Four South Asian countries will be separated from the original Long Haul zone to achieve differentiated rate optimization. This will directly impact logistics costs in the air cargo market, especially for China-India and China-South Asia routes, and bring new adjustment requirements for cost control and business operations of freight forwarders and cargo owners.

2. Core Adjustment Details

2.1 Fuel Surcharge: Zone Restructuring & Rate Optimization, Three-Zone System Launched

The highlight of this adjustment is the upgrade of the fuel surcharge billing system, optimized from the original 2 zones (Short Haul / Long Haul) to 3 zones with a new Medium Haul zone, achieving precise matching between voyage distance and rates. The specific rates and applicable scopes are as follows:

Billing Period	Short Haul (CNY/kg)	Medium Haul (CNY/kg)	Long Haul (CNY/kg)
2026.04.03-04.15 (Old Standard)	4.5	16.3 (Original Long Haul)	16.3
From 2026.04.16 (New Standard)	5.1	9.3 (New Zone)	18.6

Applicable Scope of Zones:

• Short Haul: Covers all Asian regions except South Asia, with a slight increase of 13.3% compared to the previous rate;
• Medium Haul: The core new zone exclusively for four South Asian countries – India, Bangladesh, Nepal, Sri-Lanka. The rate is reduced by 42.9% from the original Long Haul standard, significantly lowering cargo costs on China-South Asia routes;
• Long Haul: Covers global long-haul routes including Europe, America, South America, Middle East, Africa, Southwest Pacific. The rate is increased by 14.1% in line with the fuel cost fluctuation trend of international long-haul routes.

2.2 War Risk Insurance Surcharge (MWC): Standards Unchanged, Billing Rules Maintained

In this adjustment, the charging zones, rates and minimum charges of the War Risk Insurance Surcharge (MWC) remain fully unchanged. The specific implementation standards are as follows:

Destination Region	Rate per KG (HKD/kg)	Minimum Charge (Per AWB, HKD)
Hong Kong, China (HKG)	1.8	50.0
India (IN), Bangladesh (BD), Sri Lanka (LK), Maldives (MV), Nepal (NP)	2.4	50.0
Australia (AU), New Zealand (NZ)	2.4	50.0
IATA Area 1 & 2 (Americas, Europe, Africa, Middle East)	2.4	50.0
IATA Area 3 (Rest of Asia excluding HKG, IN, BD, LK, MV, NP, AU, NZ)	1.8	50.0

Note: MWC is billed in Hong Kong Dollars (HKD). The minimum charge per Air Waybill (AWB) is 50 HKD, regardless of cargo volume, and must be fully charged per shipment.

3. Industry Impact & Operational Guidelines

3.1 Market Impact Analysis

• Cost Benefits for South Asia Routes: The new Medium Haul zone separates core South Asian markets from the Long Haul zone with a over 40% rate cut, directly reducing cargo costs and benefiting exporters such as cross-border e-commerce and manufacturing, while enhancing the competitiveness of CX/UO on these routes;
• Cost Increase for Long-Haul Routes: The 14.1% rate hike reflects upward fuel cost pressure. Freight forwarders need to adjust their quotation systems for Europe, America, Middle East and other long-haul routes accordingly;
• Refined Billing System: Zone restructuring promotes a more refined air cargo billing system, aligning with international industry trends, and raising requirements for system adaptation and business operations of freight forwarders.

3.2 Key Operational Tips for Enterprises

• Strict Compliance with Effective Date: For cargo exported from April 16, 2026, the new rates must be applied. Enterprises are recommended to update internal billing systems and quotation templates to avoid errors;
• Accurate Zone Verification: Shipments to India, Bangladesh, Nepal and Sri Lanka must be billed under the Medium Haul zone;
• Currency & Minimum Charge Differentiation: Fuel surcharge is billed in CNY, MWC in HKD. Strictly implement the 50 HKD minimum charge for MWC;
• Timely Customer Communication: Freight forwarders should inform partners of the rate adjustments, especially the cost benefits for South Asia routes and quotation changes for long-haul routes.

4. Industry Terminology Glossary

Term	Full Name	Definition
MWC	War Insurance Surcharge	An insurance surcharge charged to cover risks such as war and terrorism in air cargo transportation, a standard charge in international freight.
AWB	Air Waybill	A contract document for air transportation, serving as the core document for cargo transport, billing and claims.
IATA Area	International Air Transport Association Area	The global zoning system of IATA, dividing the world into 3 areas, the core basis for air cargo tariff formulation.
Short/Medium/Long Haul	-	Tariff zones divided by voyage distance, used to set differentiated surcharge rates such as fuel surcharge.

5. Conclusion