FedEx and UPS raise fuel surcharges, even as fuel prices fall

FedEx and UPS are raising fuel surcharges again this year, in the run-up to the busy Christmas season.

The price of diesel fuel has dropped about a third in the last year, and jet kerosene by almost half (to $1.37 USD a gallon). In the last quarter, FedEx and UPS both reported that fuel costs were down approximately 35% overall.

But FedEx cites the costs of heavier packages and a growing number of residential deliveries as the reasons for the price hike. UPS say that they maintain a fuel surcharge to reduce the effects of “price volatility”, or fluctuating market prices for fuel.

FedEx’s increase will go into effect on November 2nd.

(Source: Wall Street Journal)