Attention! FedEx Shippers: Fuel Surcharge Changes Are Coming

 In Industry News

As of September 10, 2018, the FedEx Fuel Surcharge (FSC) Index Table will change. Significantly, all of the pricing advantage that FedEx has had over UPS in this regard for the last (almost) two years will be eliminated.

Click here to read the full announcement.

In brief:

The fuel surcharge percentage for FedEx Express® services will be reviewed and if necessary adjusted weekly according to the weekly published U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel.

FedEx Express fuel surcharge table September 2018

The fuel surcharge percentage for FedEx Ground® services will be reviewed and if necessary adjusted weekly according to the weekly published national U.S. on-highway average price for a gallon of diesel fuel.

FedEx ground fuel surcharge table September 2018

Implications

You’ll notice that in the new table, Domestic Express, Exports, and Imports all have their own separate indexes. And you’ll see also that with these changes, FedEx’s sizeable fuel surcharge advantage over UPS has disappeared.

For example:

Ground shipping: 16% advantage –> 0%

Domestic Express: 14% advantage –> 0%.

Exports: 40% advantage –> 0%

Imports: 65% advantage –> 0%

By bringing its fuel surcharge fees into line with those of UPS, FedEx is signaling that it’s confident in its market position. It’s possible that FedEx has made this move because it now holds a notable advantage over UPS in terms of other surcharges and fees, such as we’ve written about here.

Now we wait for the two carriers’ 2019 GRI announcements, which should be coming our way very soon. Stay tuned.

 

Recommended Posts

Leave a Comment

a calculator and a stack of invoices on a financial summary report