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FedEx Fuel Surcharges Explained
Understanding FedEx's fuel surcharge will help you prepare for your upcoming shipping activities and clear your doubts about the price surge.
With the recent rise in fuel prices, it is only reasonable to predict its impact on shipping rates. While shipping rate is primarily determined by the dimension and weight of your package, location, courier, and speed, the new FedEx surcharge review might add some extra bucks.
FedEx has increased fuel surcharge for the following services: FedEx Ground, Express, and Freight. This change will be reviewed and updated regularly based on the weekly National US Average on Highway Diesel Fuel Price report.
Information is key. As an eCommerce merchant, there are other facts that you need to know about the current changes so that you can prepare adequately for subsequent shipments. This blog post covers it all. Let's get started.
What are FedEx Surcharges?
Generally, a fuel surcharge is an additional charge to the cost of services. Like every other service provider that uses fuel, FedEx has a fixed method of calculating fuel surcharges. The fuel surcharge and applicable is always mapped out in FedEx's surcharge table on their website. Typically, FedEx updates its tables weekly as determined by the diesel price change.
It is vital to demystify some misconceptions about FedEx's fuel surcharge. The fuel surcharge is not added to cover the cost of fuel. Instead, it is charged to countervail the sudden fuel cost increase.
Understanding FedEx's fuel surcharge will help you prepare for your upcoming shipping activities and clear your doubts about the price surge.
Related Post: Fuel Surcharges: The Good, the Bad, and the Ugly
How are FedEx Surcharges Calculated?
The way service providers calculate their fuel surcharges is quite different from one another. And it is essential to familiarize yourself with how your courier calculates its own to help you get ahead. Like other carriers, there is a formula for calculating fuel surcharge. It looks like this
- Original price of fuel - New price of fuel = fuel price difference
- Difference in fuel price divided by Miles per gallon = Cost per mile
- Cost per mile multiplied Distance Traveled = Surcharge
If, for example, FedEx's fuel price standard is $5.00 per gallon, an additional $0.01 per mile will be added surcharge. Here is what we mean: say from $5.00, the price of diesel per gallon increases to $5.06, then the fuel surcharge will increase from $0.01 to $0.02 and $0.03 per mile if the fuel price increases to $5.12.
According to recent news, FedEx will be effecting this fuel surcharge on FedEx Ground, Express, and Freight in April due to the increased fuel cost.
FedEx Surcharges: What to Know in 2022
The recent rise in fuel prices in the US, coupled with the crisis in Ukraine, has necessitated that couriers adjust their shipping rates. This increase is also apparent in the fuel surcharges as the price of diesel per gallon increased to over $5.00 per gallon.
As earlier mentioned, FedEx fuel surcharges are updated regularly. The price percentage for FedEx Ground and FedEx SameDay city shipments is adjusted weekly based on the US per gallon diesel price update.
At the time of writing, the FedEx Ground and Express surcharge for August 1st-7th, 2022, is $0.512 per pound and $0.516 per pound from August 8th-14th. You can find the latest information about FedEx Fuel Surcharges on their website so that you can always stay informed.
FedEx Fuel Surcharge 2022 with Easyship
As countries all over the world continue to grapple with inflation, the toll it takes on eCommerce merchants cannot be undermined. The prices of commodities increase as well as shipping rates. It is only better to rely on a shipping partner like Easyship.
With years of experience in shipping logistics and substantial partnerships with couriers like FedEx, Easyship can help you get ahead. Easyship understands the nitty-gritty of the economic change's effect on shipping prices. The way out is to access tools that will help get the cheapest shipping price, the best couriers to use, and the fastest shipping method to keep your business running.
Regardless of the recent adjustment to FedEx surcharges, you can stay ahead. Start by clicking on the tools below:
Free Shipping Rates Calculator: Access high-volume discounts from major couriers. Plus, get instant access to delivery lead times from premium shipping couriers
Global Fulfillment: Easyship has warehouse partners on four continents to reach customers worldwide. Plus, Easyship helps scale up fulfillment capabilities without increasing overhead costs
Shipping Policy Generator: Our shipping policy generator helps merchants and crowdfunding campaigns generate their shipping policy by providing tracking and insurance options, plus other vital information for your shipping proc
Ready to ship? Sign up for a FREE Easyship account and get instant access to high-volume discounts up to 91% off for hundreds of shipping companies
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