UPS Follows FedEx's Fuel Surcharge Increase
What's changing and by how much?
Since March 2020, UPS fuel surcharges ranged from 6.25% to 9.25%. In their most recent update, fuel surcharges range from 7.75% to 10.75%. As fuel costs have increased, the lower range of the 2020 chart was not included on the 2021 chart and additional tiers were added. When comparing similar prices per gallon, the new surcharge adds an increase of 1% across the board. You can view the breakdown of 2021 fuel surcharges here.A statement on the UPS website explains how fuel surcharges are calculated, āThe surcharge will be based on the National U.S. Average On Highway Diesel Fuel Price as reported by the U.S. Energy Information Administration (EIA) for the week that is two weeks prior to the adjustment, rounded to the nearest cent. For example, the surcharge for the week of August 9, 2021 is based on the National U.S. Average On Highway Diesel Fuel Price for the week of July 26, 2021.ā
Following in FedEx's footsteps
UPS isnāt alone in 2021 fuel surcharge hikes. In May 2021, FedEx announced new fuel surcharges, which went into effect on June 21, 2021. The carrierās 2020 fuel surcharge ranged from 6% to 9%, while their 2021 surcharge increased to a range that spans from 7.75% to 10.75%. Similar to the UPS charts, the lower range of the 2020 chart was not included on the 2021 chart, which included more expensive per gallon rates. Also like UPS, the new surcharge adds a 1% increase across the board.The carriersā per gallon rates and fuel surcharges do not match cent for cent in their charts, and therefore, each carrier wins a title for ābest value.ā
When fuel rates are low, FedEx surcharges are the lowest. For example, when diesel fuel is $2.82 per gallon, the FedEx surcharge is 7.75%, while the UPS surcharge is 8.25%.
When fuel rates are high, Advantage - UPS. For example, when diesel fuel is $3.85, the FedEx surcharge is 10.75%, while the UPS fuel surcharge is 10.25%.