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 Well-Known Member

    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.