Fuel costs take a toll on holiday shipping fees
FedEx, UPS and the Postal Service have all increased prices to help counter the higher fuel costs they are paying.
For years, UPS and FedEx have added a surcharge based on the price of diesel and jet fuel which can make shipping costs fluctuate. With crude oil prices hitting record highs, the recent movement in shipping prices has been up — way up.
Anything shipped by air after Dec. 3 will have a 17.5 percent surcharge added to it by UPS or FedEx. For ground delivery, a 5.25 percent fuel surcharge will be added to the companies’ base rate.
The add-ons mean a 2-pound package shipped from Raleigh to Albuquerque, N.M. for two-day delivery in December will cost USD 21.79, up from about USD 17.49 a year ago via UPS express. The same parcel on FedEx will cost USD 18.21, up from USD 16.68 a year ago.
“We’re basically trying to mitigate the impact of the cost of fuel,” FedEx spokeswoman Sally Davenport said. “Let’s just hope people still have the Christmas spirit and go ahead and get those cards and packages off to their loved ones.”
The higher fees include increases in base shipping rates that rose 4.9 percent for UPS and 3.5 percent for FedEx this year. But most of the increase can be blamed on higher fuel costs.
A year ago, the UPS and FedEx fuel surcharge for express delivery in December was 11.5 percent. The ground delivery surcharge was 3.5 percent.
Still, both UPS and FedEx expect record volumes this year. FedEx expects to deliver 11.3 million packages on peak days before Christmas and UPS expects to deliver 22 million.
The Postal Service raised rates by an average of 8.5 percent in May to cover anticipated fuel price increases. It expects to deliver 20 billion pieces of mail, including packages, between Thanksgiving and Christmas, spokesman David Partenheimer said.
The Postal Service offers an USD 8.95 flat rate for two- or three-day priority delivery for most packages, up from USD 8.10 a year ago. The rate is for domestic mail but also applies to people sending gifts to relatives in the military overseas, regardless of the size or weight of the package being shipped.
