FedEx and UPS have recently raised their fuel surcharges, increasing delivery costs even amidst soft demand. UPS’s fuel charges for U.S. ground services are now 175 basis points higher than five months ago, with similar increases for FedEx following adjustments in late August and early September. Although the surcharges are based on the U.S. diesel fuel price, they have diverged from actual fuel costs, allowing the carriers to boost revenue despite lower demand. However, shippers are finding ways to mitigate these surcharges through lower rates and negotiations for discounts, which are now more accessible than before.

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