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Fuel runnings

UPS and FedEx raise surcharges

The Postal Service’s competitors are raising their fuel surcharges.

UPS and FedEx have increased the fees they charge customers for fuel, prompting some businesses to take a fresh look at the Postal Service, news reports say.

FedEx has raised its fuel charge from 5.5 percent to 6 percent, while UPS has changed how it calculates the fee for ground shipments, the public radio series “Marketplace” reported this week.

According to the trade publication DC Velocity, UPS’s ground fuel surcharges will rise from 5 percent to 5.5 percent if diesel prices stay within a range of $2.91 to $3.05 a gallon. If prices rise, so will UPS’s fee.

“Marketplace” reported some customers are now considering the Postal Service, which doesn’t charge fuel surcharges and lowered Priority Mail rates last year.

“[It’s] a pretty good product,” shipping consult Rob Martinez said.

In addition to hiking fuel surcharges, UPS and FedEx recently raised dimensional (DIM) weight prices. The companies now charge based on the size of some packages, regardless of their weight.

In a recent survey of businesses, 80 percent said they’ll use the Postal Service for larger, lightweight shipments now that DIM weight pricing has come into play.

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