Does your company ship with FedEx? You know FedEx fuel surcharges and understand these additional costs of transportation impact profitability. Accordingly, a fuel surcharge is an extra fee to cover the fluctuating cost of fuel. The calculation is a percentage of the base rate and is additional to the price of each package.
Estimated reading time: 3 minutes
As a result, this keeps FedEx profitable, even when the cost of fuel rises.
Changes to the FedEx express and ground charges will be applicable every Monday. The surcharge percentage will be reflected on the FedEx invoice. As a rule, the fuel surcharge for each week is available on Friday before the surcharge is applicable. In fact, you can find these updates if you follow our Instagram or Facebook feeds!
| Effective Date | Domestic (Express) | Export (Express) | Import (Express) | Ground Surcharge |
| Oct. 4, – Oct. 10, 2021 | 9.50% | 10.75% | 13.50% | 9.50% |
| Feb. 25 – Mar. 3, 2019 | 6.50% | 8.50% | 10.25% | 6.50% |
| Feb. 18 – Feb. 24, 2019 | 6.25% | 8.25% | 10.00% | 6.50% |
FedEx Express Fuel Surcharge Calculations
The fuel surcharge percentage is subject to weekly adjustment. It is based on the weekly U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel. The related fuel surcharge is assessed on the net package rate plus applicable transportation-related surcharges.
Additionally, this applies to the following transportation-related surcharges:
| Broker Select Option Fee | Extended Service Area Delivery | International Out-of-pickup-area | Oversize |
| Delivery Area Surcharge | Extended Service Area Pickup | International Premium Pickup | Peak — Oversize |
| Courier Pickup | Metro Service Area Pickup | Residential Delivery | Residential Pickup |
| Saturday Delivery | Metro Service Area Delivery | Return On-call Pickup | ExpressTag |
| Delivery reattempt | Saturday Pickup | International Out-of-delivery-area | Additional Handling |
| Additional Handling – Non-Stackable | Delivery Reattempt | Collect on Delivery | Delivery Signature Options |
FedEx Ground Fuel Surcharge Calculations
Similarly, the fuel surcharge percentage is subject to weekly adjustment. It’s based on the weekly national U.S. on-highway average price for a gallon of diesel fuel. The related fuel surcharge is assessed on the net package rate plus applicable transportation-related surcharges. Additionally, if the U.S. on-highway (diesel) index value falls under $2.83 or
increases above $4.00, the index will be extended.
Additionally, this applies to the following transportation-related surcharges:
| On-call Pickup | Oversize | Delivery Area Surcharge | Residential Delivery |
| Peak — Oversize | Unauthorized | Northern Canada Surcharge | Return On-call Pickup |
| Additional Handling | Electronic C.O.D. | Convenient Delivery Options | Peak – Additional Handling |
How do I lower shipping costs?
Every single package is subject to FedEx fuel surcharge, all shippers see these charges.
Subsequently, FedEx fuel surcharge is the most common additional fee for all Refund Retriever clients. In conclusion, here are a few tips to lower your UPS fuel surcharges:
- Negotiate better service agreement terms on discounts and surcharges
- Negotiate FedEx fuel surcharge incentives on the agreement (10 – 50% discount on FedEx Fuel Surcharges)·
- Reduce the frequency of surcharges on which fuel surcharge applies.
