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)
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