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UPS Fuel Surcharges

By Last updated on: February 19, 2019

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 covers additional fuel costs and keeps UPS profitable, even when the price of fuel rises.

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 On Highway Diesel Fuel Price. This applies for the week that is two weeks before the adjustment.

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. Accordingly this applies for the week that is two weeks before the adjustment.

UPS Fuel Surcharges

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 arenot 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.

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 then 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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