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UPS Hikes Fuel Surcharges Despite Dramatic Declines in Oil, Fuel Prices

Posted February 03, 2015

Under Logistics & Supply Chain Issues

(Mark B. Solomon – DC Velocity)

UPS Inc. today implemented a round of increases in fuel surcharges for its air, ground, and international services, the same day that rival FedEx Corp. put its own fuel surcharge hikes into effect. The moves by the nation’s two largest parcel carriers come as oil prices plumb their lowest levels in six years, despite a significant increase in Friday’s trading. […]

The UPS fuel surcharge increase was posted in the past few days on the Atlanta-based company’s website. Under the new structure, its ground fuel surcharge will increase to 5.5% from 5% if diesel prices calculated by the Energy Information Administration (EIA), a unit of the U.S. Department of Energy, fall within an average national band of $2.91 and $3.05 a gallon. Should prices range between $3.06 and $3.20 a gallon, the increase would be equal to a quarter of a percentage point. Click here to read more.