FedEx Domestic Air and Ground Fuel Surcharges Increase

March 7, 2019


FedEx has announced fuel surcharge increases on Ground and Express Domestic rates effective March 18.  As indicated by FedEx in its announcement, “fuel surcharge percentages and associated trigger points are subject to change without notice.” FedEx Ground Each of FedEx’s Ground surcharge rate levels are increasing 0.25%. This latest change finds that the surcharge will increase as high as 4.8% for a gallon of diesel priced between $2.47 and $2.56 to a low of 3.1% for a gallon of diesel priced between $3.46 and $3.55. Ground fuel surcharges are based on the weekly published national U.S. on-highway average price for a gallon of diesel fuel. Since January 7, 2019, The U.S. Energy Information Administration (EIA)’s weekly U.S. No 2 diesel retail rate (dollars per gallon) has increased 2.1% from $3.013 on January 7 to $3.076 on March 4, 2019. FedEx Express FedEx Express has also increased each level of its fuel surcharge table by 0.25%. Spend Management Experts estimates that at the current spot price for Gulf Coast which is $1.90 to $1.978, there is about a 1% surcharge change in the Fuel Surcharge table, or 16% Increase. Comparison to the current fuel table finds that increases will range from 2.9% for fuel prices between $2.21 and $2.26 to 22.7% for fuel prices between $1.71 and $1.76. FedEx Express’ fuel surcharges are based on the U.S. Gulf Coast Kerosene-Type Jet Fuel spot price (FOB). The average price per gallon from January 11 to February 22 has increased over 10.0%. If recent history is followed, UPS will likely follow by increasing their fuel levels as well, although in most cases the UPS fuel surcharges are still more expensive than FedEx. John Haber, CEO and Founder of Spend Management Experts commented, “We expect more surcharge announcements such as this one throughout this year from both FedEx and UPS. Shippers should monitor their invoices carefully and regularly as many of these surcharges are typically only posted on each provider’s website with a short lead time before implementation.” For more information on Spend Management Experts, please visit our website or contact us.

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FedEx Domestic Air and Ground Fuel Surcharges Increase

March 7, 2019


FedEx has announced fuel surcharge increases on Ground and Express Domestic rates effective March 18.  As indicated by FedEx in its announcement, “fuel surcharge percentages and associated trigger points are subject to change without notice.” FedEx Ground Each of FedEx’s Ground surcharge rate levels are increasing 0.25%. This latest change finds that the surcharge will increase as high as 4.8% for a gallon of diesel priced between $2.47 and $2.56 to a low of 3.1% for a gallon of diesel priced between $3.46 and $3.55. Ground fuel surcharges are based on the weekly published national U.S. on-highway average price for a gallon of diesel fuel. Since January 7, 2019, The U.S. Energy Information Administration (EIA)’s weekly U.S. No 2 diesel retail rate (dollars per gallon) has increased 2.1% from $3.013 on January 7 to $3.076 on March 4, 2019. FedEx Express FedEx Express has also increased each level of its fuel surcharge table by 0.25%. Spend Management Experts estimates that at the current spot price for Gulf Coast which is $1.90 to $1.978, there is about a 1% surcharge change in the Fuel Surcharge table, or 16% Increase. Comparison to the current fuel table finds that increases will range from 2.9% for fuel prices between $2.21 and $2.26 to 22.7% for fuel prices between $1.71 and $1.76. FedEx Express’ fuel surcharges are based on the U.S. Gulf Coast Kerosene-Type Jet Fuel spot price (FOB). The average price per gallon from January 11 to February 22 has increased over 10.0%. If recent history is followed, UPS will likely follow by increasing their fuel levels as well, although in most cases the UPS fuel surcharges are still more expensive than FedEx. John Haber, CEO and Founder of Spend Management Experts commented, “We expect more surcharge announcements such as this one throughout this year from both FedEx and UPS. Shippers should monitor their invoices carefully and regularly as many of these surcharges are typically only posted on each provider’s website with a short lead time before implementation.” For more information on Spend Management Experts, please visit our website or contact us.

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