FedEx to Increase Fuel Surcharges on All Products Effective Feb 2, 2015

FedEx has confirmed it will change the tables used to calculate fuel surcharges. Fuel surcharges for FedEx Express, FedEx Ground and FedEx Freight will change effective Feb 2, 2015.

On the heels of FedEx's general rate increase (effective today) and changes to the way it will price all ground packages based on dimensional weight, the changes reflect yet another major rate increase. FedEx Express and International services will increase as much as 4 percent (see Table 1 below).

I've highlighted the current fuel index to demonstrate that FedEx Express and International products change from 4.5 percent today to 6.5 percent with the February 2015 change.

Ground products will go up as much as 3.5 percent from the current fuel surcharge table (see Table 2 below).

Again, the current fuel surcharge index has been highlighted, indicating a 1 percent rate increase effective Feb. 2. Note this rate increase should impact all FedEx shippers unless a specific fuel surcharge table is part of their contract.

So whose fuel surcharge table is better, FedEx or UPS? Generally speaking, FedEx continues to maintain a slight advantage over UPS of about .5 percent (see Table 3 and Table 4 below).

The new FedEx fuel surcharge tables (including FedEx Freight) is available for viewing at http://www.fedex.com/us/services/fuelsurcharge-2015.html.