UPS sharply increases fuel surcharges, increasing customer costs.

Starting April 11, customers of UPS’s U.S. land service will pay a 16.75 percent fuel surcharge, which will be applied to the base rate of each shipment as well as most additional services known as surcharges. That was up from 15.25 percent the previous week.

UPS’s domestic airlift surcharges are also rising. On March 28, UPS announced a 1.75% increase in surcharges. Since April 4, it has soared to 20 percent, reaching 21.75 percent on Monday.

For the company’s international customers traveling to and from the US, the situation is just as bad. Starting April 11, a fuel surcharge of 23.5 percent will be levied on exports and 27.25 percent on imports. The new fees are 450 basis points higher than on March 28.

On March 17th fedex raised its surcharge by 1.75%. Starting April 11, the company will impose a 17.75 percent surcharge on every U.S. package handled by fedex land, a 21.75 percent surcharge on domestic air and land packages shipped by fedex Express, and a 24.5 percent surcharge on all U.S. exports, And impose a 28.25 percent surcharge on U.S. imports. The surcharge for fedex’s land service actually fell 25 basis points from the previous week’s figure.

UPS and fedex adjust surcharges weekly based on diesel and jet fuel prices published by the ENERGY Information Administration (EIA). Road diesel prices are published every Monday, while the jet fuel index can be published on different days but updated weekly. The latest national average for diesel is just over $5.14 a gallon, while jet fuel averages $3.81 a gallon.

Both companies link their fuel surcharges to a range of prices set by the EIA. UPS adjusts its overland fuel surcharge by 25 basis points for every 12-cent increase in EIA diesel prices. FedEx Ground, FedEx’s land transport unit, is increasing its surcharge by 25 basis points for every 9 cents a gallon EIA diesel prices rise.

Post time: Apr-25-2022