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What are FedEx Fuel Surcharges?

By Last updated on: May 6, 2024

Does your company ship with FedEx? You know FedEx fuel surcharges and understand these additional costs of transportation impact profitability.

Estimated reading time: 3 minutes

The FedEx Fuel Surcharge is an additional charge applied by FedEx to its shipping rates to adjust for the varying costs of fuel. Both ground and air shipping services can have fuel surcharges.

Fuel prices can be quite volatile, frequently changing due to various global factors. By applying a fuel surcharge that varies depending on current fuel prices, FedEx (and other carriers that use similar mechanisms) can stabilize its pricing model without having to change its base rates constantly.

FedEx Fuel Surcharge

FedEx typically determines the surcharge percentages based on the U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel (for air shipments) and on the U.S. On-Highway Diesel Fuel price (for ground shipments). The company often publishes a table that relates the spot prices to specific surcharge percentages, so customers can see in advance what the surcharge will be based on current fuel prices.

FedEx-Ground-Fuel-Surcharge

The exact percentage and structure of the surcharge can change over time, and it might be different for domestic vs. international shipments or for other specific services.

Changes to the FedEx Express and ground charges will be applicable every Monday. The FedEx fuel surcharge percentage will be reflected on the FedEx invoice. As a rule, the FedEx fuel surcharge for each week is available on Friday before the fee is applicable. You can find these updates if you follow our Instagram or Facebook feeds!  

Effective DateDomestic (Express)Export (Express)Import (Express)Ground Surcharge
May 6 – May 12, 202417.25%19.25%23.00%16.50%
Mar. 28 – Apr. 3, 202216.50%17.50%20.25%16.00%
Jan. 17 – Jan. 24, 202112.50%12.50%12.50%12.00%
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 fees.

FedEx Fuel Surcharge - Express 2022

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, and 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, the index extends if the U.S. on-highway (diesel) index value falls under $2.83 or increases above $4.00.

FedEx Fuel Surcharge Ground 2022

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, the FedEx fuel surcharge is the most common additional fee for all Refund Retriever clients. In conclusion, here are a few tips to lower your U.P.S. 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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