As you know, oil prices are going through the roof. The impact is being felt at the gas pump for consumers.
However, the supply shortage is also impacting the fuel prices for jet fuel (air) and diesel (ground). Fuel prices are at a 14-year high and expected to continue climbing.
As a result, please be aware that the fuel surcharge charged by carriers are directly reflecting these high costs. As of this week (March 7-13, 2022), the fuel surcharge percentage is at 14.50% of transportation costs for air packages (Overnight, 2Day, 3Day) and 13.25% for ground shipments with UPS and FedEx. Even worse, international shipments are seeing north of 15% on outbound from US shipments and around 20% on imports to US.
UPS has already released the fuel surcharge percentages for next week (March 14-20, 2022). While the increase for ground is 0.25%, air packages will see increases north of 3%. International air is getting an increase of roughly 5%.
We are closely monitoring the global supply situation and keeping our fingers crossed of some relief sooner rather than later. Please be aware of these significant increases for all your shipments – D2C, B2B, Import, and Export.
Vice President, Customer Experience & Global Parcel Strategy