Important Update on FedEx Fuel Surcharge Pricing

Important Update on FedEx Fuel Surcharge Pricing

fedex fuel surcharge

Though it may have slipped under the radar, a recent change to FedEx’s fuel surcharges may have serious implications for shippers in the United States.

Previously, FedEx fuel surcharges were just for express and ground shipments. However, as of September 10th, they have implemented a new FedEx Express fuel surcharge structure that focuses on differentiating between imports and exports.

Here’s how the surcharge changes break down:

FedEx’s New Fuel Surcharge Changes

As of September 10th, FedEx updated their Fuel Surcharge Table. While changes in surcharges from one week to the next are not uncommon, it was the way the charges were broken down that was the most interesting.

What was immediately apparent was that two new rows were present: Import and Export.

fedex fuel surcharge changes

Prior to September 10th, the international fuel surcharge was embedded into the express fuel surcharge category.

fedex fuel surcharges compared

Based on the table (as of September 10), you can see that export shipping fuel surcharges are now 10.50%, whereas, the previous period they were 7.25%, while import shipment fuel surcharges were increased even more – 12.75% compared to 7.25% previously.

Back in April, UPS announced that it would be changing the structure of its fuel surcharges.

They, too, restructured their surcharge regime to make a distinction between exports and imports.

That means that, prior to September 10th, FedEx was applying a far smaller surcharge on certain shipments than UPS.

While this may have benefited shippers, FedEx themselves clearly felt that their position in the market was secure enough to be able to make these changes.

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