Ameer Randolph
The FedEx Fuel Surcharge is an additional charge applied to FedEx Express shipments to offset the fluctuating cost of fuel. This surcharge is not a fixed amount and is calculated based on the type of fuel and the shipment method. The surcharge is adjusted weekly and is applied to both outgoing and incoming shipments.
| Characteristics | Values |
|---|---|
| Basis of calculation | The fuel surcharge is calculated based on the varying costs of fuel. |
| Applicable services | FedEx Express services, FedEx Ground, FedEx Home Delivery, FedEx International Ground, FedEx International Express Freight (IXF), FedEx International Airport-to-Airport (ATA), FedEx Freight, FedEx International Premium, FedEx Express Freight, and FedEx Express International export and import freight. |
| Excluded services | FedEx International Express Freight (IXF) and FedEx International Airport-to-Airport (ATA) services do not include a fuel surcharge. |
| Frequency of adjustment | The surcharge percentages are subject to change without notice and are adjusted weekly, typically on Mondays. |
| Lag | There is a two-week lag between the fuel price index and the fuel surcharge. FedEx may use a longer lag when the fuel price posted on eia.gov is delayed. |
| Factors influencing fuel prices | Fuel prices can fluctuate due to various global factors. |
| Fuel surcharge calculation for air shipments | Based on the U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel. |
| Fuel surcharge calculation for ground shipments | Based on the U.S. On-Highway Diesel Fuel price. |
| Additional charges | Applicable surcharges vary based on the type of FedEx service and include Address Correction, Additional Handling Surcharge, FedEx Ground Call Tag, Delivery Area Surcharge, FedEx Delivery Signature Options, etc. |
| Notification of changes | Changes to the surcharge percentages are published on the website and social media platforms, including Instagram and Facebook. |
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What You'll Learn
FedEx Express and ground charges
The FedEx Fuel Surcharge is an additional charge applied to FedEx Express and ground shipping rates to adjust for fluctuating fuel costs. This surcharge is applied to both ground and air shipping services and varies according to current fuel prices, allowing FedEx to stabilise its pricing model without frequently adjusting its base rates. The surcharge is calculated based on the type of fuel used: kerosene-type jet fuel for air shipments and on-highway diesel fuel for ground shipments.
For FedEx Ground, FedEx Home Delivery, and FedEx International Ground shipments, the fuel surcharge is calculated based on the net package rate, plus additional surcharges such as the Additional Handling Surcharge, Address Correction, FedEx Ground Call Tag, Delivery Area Surcharge, and more. The list of applicable surcharges may be amended or augmented without notice.
For FedEx Express freight shipments where a weight-based calculation is used, the fuel surcharge is assessed based on the billable weight of the shipment, which may include additional deficit weight. FedEx Freight shipments consider all rates and charges for linehaul transportation and other fuel-consuming services.
Changes to FedEx Express and ground charges take effect every Monday, with the updated fuel surcharge percentage reflected on the FedEx invoice. The surcharge percentage is typically available on the preceding Friday. The surcharge is adjusted based on the weekly average fuel price, with a two-week lag to account for potential delays in fuel price updates from the U.S. Department of Energy.
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Fuel surcharge percentages
The fuel surcharge percentage for FedEx Express services is subject to weekly adjustments. These adjustments are based on the weekly published US Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel. The surcharge is adjusted every Monday, usually with a two-week lag, to reflect recent fuel prices. The fuel surcharge for FedEx Express services applies to FedEx Express International export and import freight charges published in the Middle East, the Indian subcontinent, and Africa.
The fuel surcharge for FedEx Ground, FedEx Home Delivery, and FedEx International Ground shipments is based on the net package rate, plus additional surcharges such as Address Correction, FedEx Ground Call Tag, Delivery Area Surcharge, etc. The list of applicable surcharges may be amended or augmented without notice.
For FedEx express freight shipments where a weight-based calculation is used, the fuel surcharge is assessed based on the billable weight of the shipment. This includes any additional deficit weight when applicable. For FedEx Freight shipments, the fuel surcharge is applied to all rates and charges for linehaul transportation and other fuel-consuming services.
FedEx typically publishes a table that relates spot prices to specific surcharge percentages. This allows customers to anticipate the surcharge based on current fuel prices. The fuel surcharge is updated periodically and is published on the FedEx website.
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Fuel surcharge for FedEx Ground
The FedEx Fuel Surcharge is an additional charge applied to FedEx shipping rates to adjust for fluctuating fuel costs. This surcharge is applied to both ground and air shipping services. Fuel prices can vary frequently due to various global factors, so FedEx uses a fuel surcharge to stabilise its pricing model without having to adjust its base rates.
For FedEx Ground, FedEx Home Delivery, and FedEx International Ground shipments, the fuel surcharge is assessed based on the net package rate and various applicable surcharges. These surcharges include Additional Handling Surcharge, Address Correction, FedEx Ground® Call Tag, Delivery Area Surcharge, FedEx® Delivery Signature Options, FedEx Home Delivery® Convenient Delivery Options, Hazardous Materials, Northern Canada Surcharge, Oversize Charge, Demand — Additional Handling Surcharge, Ground Unauthorized Package Charge, Residential Delivery Charge, Return Pickup, and any temporary surcharges currently in effect. This list may be amended or augmented without notice.
The fuel surcharge for FedEx Ground services is based on the weekly published national U.S. on-highway average price for a gallon of diesel fuel. The surcharge percentage is updated weekly and applies to the net transportation charges and many applicable surcharges. As fuel prices fluctuate, the surcharge adjusts according to a tiered rate table published by FedEx.
Changes to the FedEx fuel surcharge for ground services take effect every Monday, with the surcharge percentage reflected on the FedEx invoice. The surcharge for the upcoming week is typically available on the preceding Friday.
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FedEx International Express Freight and FedEx International Airport-to-Airport
The FedEx fuel surcharge is an extra fee that is applied to adjust for the varying costs of fuel. This surcharge is calculated as a percentage of the base rate and is added to the price. It is important to note that the fuel surcharge does not apply to FedEx International Express Freight (IXF) and FedEx International Airport-to-Airport (ATA) services.
For FedEx Ground, FedEx Home Delivery, FedEx International Ground, and FedEx Freight, the fuel surcharge is determined by the U.S. On-Highway Diesel Fuel price. The surcharge is reflected in the on-highway index for the price of a gallon of diesel fuel, which is published by the U.S. Department of Energy.
For other services, including FedEx Express Freight, the fuel surcharge is based on the U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel. The USGC index, published by the U.S. Department of Energy, provides the spot price per gallon of jet fuel.
The fuel surcharge for FedEx Express Freight shipments is assessed on the billable weight of the shipment. The billable weight may include additional deficit weight when applicable. The fuel surcharge rate for FedEx Freight services is specified in Item 570 of the FXF 100 Series Rules Tariff.
The FedEx fuel surcharge for U.S. export freight shipments using FedEx International Express Freight (IXF) and FedEx International Airport-to-Airport (ATA) services is based on chargeable weight. This fuel surcharge rate is subject to change without notice, as per the FedEx International Premium and IXF Terms and Conditions.
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FedEx Freight shipments
The FedEx fuel surcharge is a percentage that is applied to the transportation charge, meaning heavier packages and those moving longer distances will have a much higher fuel surcharge. The FedEx fuel surcharge is applied to a variety of shipping methods, including FedEx Ground, Express, and Freight. For FedEx Freight shipments, the fuel surcharge is assessed on all rates and charges for linehaul transportation and other services that consume fuel. This includes tariffs or contracts that refer to Item 570 of the FXF 100 Series Rules Tariff.
The calculation of fuel surcharges involves several key variables, including the fuel base price, which is the benchmark price of fuel at the time of booking a shipment. Freight carriers often calculate fuel surcharges based on the distance travelled, while parcel carriers like FedEx might apply a percentage markup on the shipment's sale price. The surcharge for FedEx Freight shipments is based on the rates and charges for fuel-consuming services.
The surcharge percentages and associated trigger points are subject to change without notice, and they may differ for domestic versus international shipments or other specific services. Changes to FedEx Express and Ground charges take effect every Monday, with the fuel surcharge percentage reflected on the FedEx invoice. The exact percentage and structure of the surcharge may also change over time.
As fuel prices rise or fall, the surcharge adjusts according to a tiered rate table published by FedEx. This surcharge table relates spot prices to specific surcharge percentages, allowing customers to see in advance what the surcharge will be based on current fuel prices. This surcharge is an additional fee applied to FedEx Express shipments to offset the fluctuating cost of fuel.
Fuel surcharges are a critical element in the transportation and logistics sector, helping carriers manage the risks associated with fluctuating fuel prices. These charges reflect the direct costs of fuel and broader market dynamics and operational strategies. Understanding the nuances of fuel surcharges is essential for businesses and consumers to navigate shipping logistics and cost management effectively.
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Frequently asked questions
The FedEx fuel surcharge is an additional fee applied to FedEx Express shipments to offset the fluctuating cost of fuel.
Changes to FedEx Express and ground charges will take effect every Monday. The surcharge percentage is updated weekly and applies to the net transportation charges and many applicable surcharges.
The surcharge is calculated based on the weekly average of the U.S. Gulf Coast (USGC) spot price for kerosene-type jet fuel, reported by the U.S. Department of Energy. The surcharge adjusts according to a tiered rate table published by FedEx.
The fuel surcharge applies to all FedEx Express services except FedEx International Express Freight (IXF) and FedEx International Airport to Airport (ATA) service. For FedEx Ground, Home Delivery, and International Ground shipments, the fuel surcharge is assessed on the net package rate plus additional applicable surcharges.
