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FEDEX REFUNDSUPS REFUNDS

What are FedEx Fuel Surcharges?

By Last updated on: October 6, 2021

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 DateDomestic (Express)Export (Express)Import (Express)Ground Surcharge
Oct. 4, – Oct. 10, 20219.50%10.75%13.50%9.50%
Feb. 25 – Mar. 3, 20196.50%8.50%10.25%6.50%
Feb. 18 – Feb. 24, 20196.25%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.

FedEx Fuel Surcharge 2021 Change

Additionally, this applies to the following transportation-related surcharges:

Broker Select Option FeeExtended Service Area DeliveryInternational Out-of-pickup-areaOversize
Delivery Area SurchargeExtended Service Area Pickup International Premium PickupPeak — Oversize
Courier Pickup Metro Service Area PickupResidential DeliveryResidential Pickup
Saturday DeliveryMetro Service Area DeliveryReturn On-call PickupExpressTag
Delivery reattemptSaturday PickupInternational Out-of-delivery-areaAdditional Handling
Additional Handling – Non-StackableDelivery ReattemptCollect on DeliveryDelivery 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.

FedEx Fuel Surcharge Ground 2021

Additionally, this applies to the following transportation-related surcharges:

On-call PickupOversizeDelivery Area SurchargeResidential Delivery
Peak — OversizeUnauthorizedNorthern Canada SurchargeReturn On-call Pickup
Additional HandlingElectronic C.O.D.Convenient Delivery OptionsPeak – 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.
Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur, and other publications discussing parcel auditing, shipping, e-commerce, and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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