UPS to raise cap on air fuel surcharge
UPS (NYSE: UPS) today announced plans to raise its cap to 12.5% on the fuel surcharge applied to UPS Next Day Air®, UPS 2nd Day Air® and UPS 3 Day Select® and U.S. international air services beginning Oct. 3.
The surcharge continues to be calculated from an index based on the average price for a gallon of kerosene-type jet fuel and remains the lowest among major air express carriers, even with the new cap.
A fuel surcharge on UPS Ground services is unaffected and continues to fluctuate monthly based on the U.S. Energy Department’s On-Highway Diesel price. It will stand at 3% in September.
UPS introduced a 9.5% cap on the fuel surcharge for its premium Air services in January of this year after prices began advancing rapidly toward the end of 2004. Since that time, jet fuel prices have increased more than 60%.
“We have done a good job of leveraging our integrated network to obtain fuel savings, and that’s what enables us even now to keep our air surcharge cap below our major competitors,” said Kurt Kuehn, UPS senior vice president of worldwide sales and marketing.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS’s stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
