SCD: UPS, FedEx fuel surcharge hikes to heat up delivery prices

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SUPPLY CHAIN DIVE reports:

FedEx and UPS’ index-based fuel surcharges are adjusted weekly based on prices reported by the U.S. Energy Information Administration. For air shipments, it’s based on the U.S. Gulf Coast price for kerosene-type jet fuel. For ground parcel shipments, the surcharge is based on the national average on-highway diesel fuel price.

For example, if the diesel fuel index’s price per gallon is between $3.37 per gallon and $3.46 per gallon, a FedEx Ground delivery would see a 14% markup. The surcharge percentage for that fuel price range will jump to 15% on May 6…

The full post is here.