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Details on the Latest UPS Fuel Surcharge Update

Brian Byrd avatar

Jul 02, 2021

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In response to FedEx’s recent update to its fuel surcharge tables, UPS has followed with an increase of its own. This increase is to take effect starting on July 5th, 2021. It would seem increasing inflation and rising fuel costs have given UPS no other choice but to follow in FedEx’s footsteps.

The chart below illustrates UPS’s updated surcharge table.

Ground

UPS offers a cost advantage over FedEx when it comes to Ground services, with the gap expanding as the cost of fuel rises. The following chart illustrates the side-by-side comparison of Ground Fuel surcharges between the two companies.

Observing the last 13 weeks of fuel prices, the average surcharge on UPS ground packages was 8%. After the increase, the new surcharge amount will be 8.25%. This is a modest increase of only 3.13% compared to FedEx’s, which has seen an average increase of 16.23%.

Air

UPS has matched FedEx’s fuel pricing on domestic air rates, with both posting a 14.57% increase of the surcharge on domestic express packages. The chart below is a representation of the effect of this change.

Although UPS has not published its updated international fuel surcharges yet, rates are expected to increase alongside domestic rates starting July 5th. This increase will bring the gap between the two carrier’s surcharges closer together, much like their gap on domestic Ground surcharges.

It is important for shippers to understand the cost impact these changes will have on their business. Contact info@transimpact.com for a no-obligation analysis of how these new Fuel Surcharges, as well as all this year’s increases, impact your small parcel shipping costs heading into the peak shipping season.

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About Brian Byrd

Brian Byrd joined TransImpact in 2012. As EVP of Operations he helps ensure that TransImpact remains an industry leader in developing innovative technological solutions that help our clients to grow their companies.

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