FedEx and UPS have recently raised their fuel surcharges, increasing delivery costs despite low demand. UPS’s U.S. ground and SurePost services saw a 175 basis point rise, effective August 26, while FedEx made similar adjustments on September 2. These surcharges, which are adjusted weekly based on diesel prices, now include a 16% markup when diesel is priced at $3.30 per gallon. Although surcharges are higher than actual fuel prices, they help the companies maintain revenue. Shippers have managed to mitigate these increases through negotiated discounts, which were previously offered only to large clients.

Source: https://www.supplychaindive.com/news/ups-fedex-fuel-surcharge-fsc-increases-2024/726432/