FedEx has confirmed it will change the tables used to calculate fuel surcharges. Fuel surcharges for FedEx Express, FedEx Ground and FedEx Freight will change effective Feb 2, 2015.
On the heels of its General Rate Increase (effective January 5, 2015) and changes to the way FedEx will price all Ground packages based on dimensional weight, the changes reflect yet another major rate increase. FedEx Express and International services will increase as much as 4% (see Table 1 below).
We’ve highlighted the current fuel index to demonstrate that FedEx Express and International products change from 4.5% today to 6.5% with the February 2015 change.
Ground products will go up as much as 3.5% from the current fuel surcharge table (see Table 2 below).
Again, the current fuel surcharge index has been highlighted, indicating a 1% rate increase effective Feb 2, 2015. Note, this rate increase should impact all FedEx shippers unless a specific fuel surcharge table is part of their contract.
So who’s fuel surcharge table is better, FedEx or UPS? Generally speaking, FedEx continues to maintain a slight advantage over UPS of about .5% (see Table 3 and Table 4 below).
The new FedEx fuel surcharge tables (including FedEx Freight) is available for viewing at http://www.fedex.com/us/services/fuelsurcharge-2015.html.
Rob Martinez, DLP is President & CEO of Shipware LLC, an innovative parcel audit and consulting firm that helps volume parcel shippers reduce shipping costs 10%-30%. Rob offers 25 years’ experience negotiating parcel contracts – on both sides of the negotiating table – for some of the most recognizable brands in the world, and is a sought after speaker and industry thought leader. He welcomes questions and comments, and can be reached at 858-879-2020 Ext 114 or firstname.lastname@example.org.