UPS Shippers Better Fuel Up for Higher Surcharges in 2022

cheryl

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UPS Shippers Better Fuel Up for Higher Surcharges in 2022 - Benzinga

If UPS customers haven't baked higher fuel surcharges into their 2022 shipping budgets, they better find the kitchen fast.

Effective Nov. 15, the Atlanta-based transport and logistics giant will raise its fuel surcharges by 1% on all its U.S. air and ground services, according to a source familiar with the matter. The upcoming levy comes on the heels of a 75 basis-point fuel surcharge increase that UPS imposed over the summer.

UPS, which hasn't made a public announcement, declined comment.

UPS sets its fuel surcharges weekly from a range of price points based on the diesel and jet fuel prices set by the U.S. Energy Information Administration (EIA). For example, should the weekly national average price for on-highway diesel range between $3.62 a gallon and $3.73 a gallon, the revised surcharge for that week would be 11%, up from the current 10% levy. The government's most recent national average for on-highway diesel was $3.71 a gallon.

There is a two-week lag between EIA's pricing changes and when they are reflected in UPS' surcharges. As a result, UPS' surcharges for the week ending Nov. 1 would be based on the EIA prices for the week ending Oct. 18.
 
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