UPS Announcement: Update to U.S. Fuel Surcharges Effective March 2, 2020

by Jamie Vogel Posted February 23, 2020 in Industry News, UPS Fuel Surcharge

Here is a comprehensive guide explaining Descriptive, Predictive, & Prescriptive Analytics, written for the logistics industry.

FROM THE UPS WEBSITE:

Effective March 2, 2020, the fuel surcharges for U.S. Ground, Air, Import, and Export services will increase. Details on these changes can be found here:

Fuel Surcharge Rate Tables

Air, Import, and Export fuel surcharges will continue to be based on the National Average U.S. Gulf Coast Jet Fuel Price and adjusted weekly.

Ground fuel surcharges will continue to be based on the National U.S. Average On Highway Diesel Fuel Price and adjusted weekly.

Changes to the U.S. fuel surcharge will also be reflected on our fuel surcharge page beginning February 27, 2020.

ups.com/fuelsurcharge

The following are some additional observations:

Since 2018, spot prices for fuel have traded at cheaper prices, with the spot price of fuel being down -19.97% from one year ago.

UPS shippers could feel 4-8% increases on Domestic Ground and Air Fuel Surcharge and 30% increases on International Import fuel moving forward. When and if the spot price of fuel begins to increase, the net effect of UPS’s increase announcement will be lower for Domestic shippers but International shippers will see a higher increase.

See below tables for illustration:

GROUND Service

Spot Price of Jet Fuel	Current FSC %	March 2020 FSC %	% Increase
$2.20	5.50%		0.0%
$2.40	5.75%	6.25%	8.7%
$2.50	6.00%	6.50%	8.3%
$2.60	6.25%	6.75%	8.0%
$2.70	6.50%	7.00%	7.7%
$2.80	6.75%	7.25%	7.4%
$3.00	7.00%	7.50%	7.1%
$3.10	7.25%	7.75%	6.9%
$3.20	7.50%	8.00%	6.7%
$3.30	7.75%	8.25%	6.5%
$3.40	8.00%	8.50%	6.3%
$3.60	8.25%	8.75%	6.1%
$3.70	8.50%	9.00%	5.9%
$3.80	8.75%	9.25%	5.7%

AIR Service:

Spot Price of Jet Fuel	Current FSC %	March 2020 FSC %	% Increase
$1.55	5.75%	6.00%	4.3%
$1.60	6.00%	6.25%	4.2%
$1.65	6.25%	6.50%	4.0%
$1.70	6.50%	6.75%	3.8%
$1.75	6.75%	7.00%	3.7%
$1.80	7.00%	7.25%	3.6%
$1.85	7.25%	7.50%	3.4%
$1.90	7.50%	7.75%	3.3%
$1.95	7.75%	8.00%	3.2%
$2.00	8.00%	8.25%	3.1%
$2.05	8.25%	8.50%	3.0%
$2.10	8.50%	8.75%	2.9%
$2.15	8.75%	8.75%	0.0%
$2.20	9.00%	8.75%	-2.8%
$2.25	9.25%	8.75%	-5.4%

INTERNATIONAL Services:

SpotPrice	Current FSC %	Exports	% Increase	Current FSC %	Imports	% Increase
$1.52	5.75%	6.25%	8.7%	8.5%	10.0%	17.6%
$1.55	6.00%	6.50%	8.3%	8.8%	10.3%	17.1%
$1.58	6.25%	6.75%	8.0%	9.0%	10.5%	16.7%
$1.61	6.50%	7.00%	7.7%	9.3%	10.8%	16.2%
$1.64	6.75%	7.25%	7.4%	9.5%	11.0%	15.8%
$1.67	7.00%	7.50%	7.1%	9.8%	11.3%	15.4%
$1.70	7.25%	7.75%	6.9%	10.0%	11.5%	15.0%
$1.73	7.25%	8.00%	10.3%	10.0%	11.8%	17.5%
$1.76	7.25%	8.25%	13.8%	10.0%	12.0%	20.0%
$1.79	7.25%	8.50%	17.2%	10.0%	12.3%	22.5%
$1.82	7.25%	8.75%	20.7%	10.0%	12.5%	25.0%
$1.85	7.25%	9.00%	24.1%	10.0%	12.8%	27.5%
$1.88	7.25%	9.25%	27.6%	10.0%	13.0%	30.0%

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