UPS Shippers Better Fuel Up for Higher Surcharges in 2022 - Benzinga
If UPS customers haven't baked higher fuel surcharges into their 2022 shipping budgets, they better find the kitchen fast.
Effective Nov. 15, the Atlanta-based transport and logistics giant will raise its fuel surcharges by 1% on all its U.S. air and ground services, according to a source familiar with the matter. The upcoming levy comes on the heels of a 75 basis-point fuel surcharge increase that UPS imposed over the summer.
UPS, which hasn't made a public announcement, declined comment.
UPS sets its fuel surcharges weekly from a range of price points based on the diesel and jet fuel prices set by the U.S. Energy Information Administration (EIA). For example, should the weekly national average price for on-highway diesel range between $3.62 a gallon and $3.73 a gallon, the revised surcharge for that week would be 11%, up from the current 10% levy. The government's most recent national average for on-highway diesel was $3.71 a gallon.
There is a two-week lag between EIA's pricing changes and when they are reflected in UPS' surcharges. As a result, UPS' surcharges for the week ending Nov. 1 would be based on the EIA prices for the week ending Oct. 18.
If UPS customers haven't baked higher fuel surcharges into their 2022 shipping budgets, they better find the kitchen fast.
Effective Nov. 15, the Atlanta-based transport and logistics giant will raise its fuel surcharges by 1% on all its U.S. air and ground services, according to a source familiar with the matter. The upcoming levy comes on the heels of a 75 basis-point fuel surcharge increase that UPS imposed over the summer.
UPS, which hasn't made a public announcement, declined comment.
UPS sets its fuel surcharges weekly from a range of price points based on the diesel and jet fuel prices set by the U.S. Energy Information Administration (EIA). For example, should the weekly national average price for on-highway diesel range between $3.62 a gallon and $3.73 a gallon, the revised surcharge for that week would be 11%, up from the current 10% levy. The government's most recent national average for on-highway diesel was $3.71 a gallon.
There is a two-week lag between EIA's pricing changes and when they are reflected in UPS' surcharges. As a result, UPS' surcharges for the week ending Nov. 1 would be based on the EIA prices for the week ending Oct. 18.
