The fact there is historic inflation happening right now and the cost of most shipping fuel is consistently rising is not news. But what doesn’t seem to be getting enough attention is how high the UPS and FedEx Fuel Surcharges have become as a result.
Here is a view of both carriers’ surcharge amounts, by service, over the past five years. It’s clear we’re finding ourselves in uncharted territory. Two years ago most services were paying <2% in fuel surcharges, but that number has soared to about 12% to 18% today.
The concern is that many companies have not budgeted properly for this added expense, especially on the heels of the 2022 GRI and other open-ended fees the carriers have in place right now.
Here is a chart of inflation (as a percent) over the same time period.
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