Two of the major domestic shipping carriers, UPS and FedEx are increasing their fuel surcharges this year. Here are the details of these increases:
Carrier | Services Affected | Cost Increase | Effective Date |
UPS | Domestic Ground Surepost Air International Fuel Surcharge | 2.5% to 3.75% | September 16, 2024 |
FedEx | Domestic Air Ground Home Delivery International Ground | 0.75%-1.25% | September 2, 2024 |
Read the announcements for both of these cost increases:
Which Costs are Changing?
These increases will affect fuel surcharge costs, which is different than the standard weekly index-based changes. This is an increase in a price per gallon band, as opposed to an increase based on rising fuel costs in the index.
The UPS Ground Domestic and Surepost surcharge will continue to be based on the National U.S. Average On-Highway Diesel Fuel Price and adjusted weekly. The US Domestic Air Fuel Surcharge will continue to be based on the National Average US Gulf Coast Jet Fuel Price and adjusted weekly. Read the full listing of all UPS fuel surcharge rates.
Similarly, the fuel surcharge for FedEx Ground, Home Delivery, and International is based on the weekly published national US on highway average price for a gallon of diesel fuel. The fuel surcharge for all other services is based on the weekly published US Golf Coast spot price for a gallon of kerosene-type jet fuel.
Overall Carrier Market Context
This is the sixth time UPS has increased their fuel percentages since December 2023.
This is the fourth time FedEx has increased their fuel surcharge percentage since December 2023.