What are UPS Fuel Surcharges
If your company ships UPS, you understand the impact UPS fuel surcharge has on shipping expenses. Fuel surcharges are extra fees UPS charges to cover the fluctuating cost of fuel. The calculation is a percentage of the base rate and added to the charges of each package. As a result, it
UPS Fuel Surcharge Calculations
Ground Fuel Surcharge and UPS Mail Innovations: UPS uses an index-based surcharge that adjusts Monday each week. The basis for the fee is the National U.S. Average
Domestic Air fuel surcharge: UPS uses an index-based surcharge that adjusts on Monday of each week. The basis for fuel surcharge the U.S. Gulf Coast price for kerosene-type jet fuel.
How do I lower UPS Fuel Surcharges?
Every single package is subject to a fuel surcharge, all shippers are impacted by fuel surcharge. As a result, the fuel surcharge is the most common surcharge for all Refund Retriever clients. In short, here are a few tips to lower UPS fuel surcharges:
- Negotiate better service agreement terms on discounts and surcharges.
- Negotiate UPS fuel surcharge incentives on the agreement.
- (10 – 50% discount on fuel surcharge)
- Reduce the frequency of surcharges on which fuel surcharge is applied .
- (see the list below of services affected)
Refund Retriever will help lower your transportation charges with UPS and FedEx. Chiefly our reports and analytics identify the total amount spent on fuel surcharges each year. Additionally, our free contract analysis will start carrier agreement negotiations off with the best information. In summary, it is possible for UPS to decrease or even eliminate fuel surcharge.
What services are affected by fuel surcharges?
Fuel surcharges apply to domestic and international transportation charges and to the following accessorial charges:
- Delivery Charges and Pickup Charges.
- Remote/Extended Delivery and Pickup Charges.
- Residential Surcharge.
- Return Services with Pickup.
- Saturday Delivery and Saturday Pickup.
- Signature Services.
- Additional Handling, Large Package and Over Maximum Limits.
- Oversize Pallet Handling Surcharge and Peak Surcharges.
Consequently, UPS daily rates differ from UPS retail rates. UPS fuel surcharges do not apply to UPS Ground packages when subject to UPS retail rates. In conclusion, when your company is looking to reduce the impact of UPS fuel surcharge, contact Refund Retriever today.