Why you're still paying a fuel surcharge at FedEx and UPS

Discussion in 'The Latest UPS Headlines' started by cheryl, Nov 23, 2015.

  1. cheryl

    cheryl I started this. Staff Member

    Why you're still paying a fuel surcharge at FedEx and UPS - CNN Money

    Fuel prices are plunging, but that hasn't stopped FedEx and United Parcel Service from charging customers a fuel surcharge.

    The price of diesel is down 30% from a year ago, but UPS still charges customers a 5.25% fuel surcharge on top of whatever it would cost to ship a package. FedEx's fuel surcharge is 4.25% for ground shipments and 2.75% for express shipments.

    The surcharges have earned both companies a place on Consumer Reports' list of "naughty" companies for Christmas 2015.
     
  2. Operational needs

    Operational needs Well-Known Member

    One word....greed.
     
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  3. Returntosender

    Returntosender Well-Known Member

    What % of the surcharge is profit?
     
  4. upschuck

    upschuck Avatar bet gone wrong

    Probably most of it, since the reason for some of the bad quarterly earnings have been the lower fuel surcharge, if I remember correctly.
     
  5. FrigidFTSup

    FrigidFTSup Resident Suit

    Most of it. We run an 8% margin. So a 4% fuel charge helps a lot.
     
  6. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    There is a 2 month lag in applying the fuel surcharge (FS) so right now the September spot prices are the basis of the applied November FS.