UPS Just Raised Fuel Surcharges — Again!

Effective March 9th, UPS is increasing its Domestic Ground Fuel Surcharge (FSC) by 1%. That’s the 11th FSC increase in under two and a half years.

UPS trailed FedEx by 0.5% on fuel surcharges since January 5th. With this move, UPS leaps ahead of FedEx by that same margin. This signals that this move is more about competitive revenue positioning than fuel costs.

Source: UPS Fuel Surcharge

The Uncomfortable Truth

FSC rates have largely decoupled from actual diesel prices. While fuel costs fluctuate, these surcharge increases have become a reliable revenue tool for UPS and FedEx, regardless of what’s happening at the pump. Parcel shippers should plan accordingly, because more increases are coming.

A discount on FSC provides only partial relief. When the underlying surcharge table keeps climbing, discounts off a higher number still result in a net cost increase for your operation.

Market Trends

UPS and FedEx have demonstrated a consistent willingness to use FSC as a pricing lever, independent of market conditions. Parcel shippers who treat each increase as a one-time event will find themselves perpetually reactive. The better strategy is structural: renegotiate the terms, reduce the exposure, and diversify the risk.

The next increase is not a matter of if — it’s a matter of when.

How ebb Logistics Can Help

This is exactly the kind of environment where having an expert in your corner pays off. ebb Logistics is a consulting firm that specializes in helping parcel shippers take back control of their shipping costs, and the FSC problem is squarely in their wheelhouse.

FSC increases aren’t slowing down. But with the right partner analyzing your contracts, auditing your invoices, and negotiating on your behalf, you don’t have to absorb them passively.

Reach out to ebb Logistics to find out how much you could be saving.

Contact ebb Logistics!