FedEx is preparing to adjust its international fuel surcharge calculation, a change that is expected to increase costs for export-heavy shippers while easing pressure on imports.
From Monday, the company will remove the distinction between export and import fuel surcharges, which are currently calculated separately and adjusted weekly based on jet fuel prices. Under the new model, both export and import shipments will be subject to the same fuel surcharge rate.
For context, with a jet fuel price of $3.31 per gallon, exports currently face a 34.25% fuel surcharge, while imports are charged 38.5%. After the change takes effect, both will be aligned at 37.75%, effectively raising export costs and lowering import charges.
Even before the adjustment, FedEx fuel surcharges have been declining since late May but remain elevated. This week, export surcharges stand at 34.5%, compared with 38.75% for imports. In mid-March, export rates were 30.75% and import rates 34.5%, showing how volatility in fuel markets continues to influence shipping costs.
According to analysis from ShipScience, the new structure will translate into roughly $35 more per $1,000 in fuel-applicable transportation charges for export shipments, while import shipments will see a reduction of about $7.50 per $1,000. The company also noted that export shippers will effectively be shifted to a rate previously reserved for imports, without any mechanism to revert to lower export-specific pricing.
The move comes amid ongoing pressure on global fuel markets, with recent geopolitical disruptions in the Iran conflict and the Strait of Hormuz adding to tighter oil supply and higher jet fuel prices across the aviation sector.
FedEx confirmed that the updated surcharge structure will apply to international shipments, but will not affect FedEx International Ground services.
Competitor UPS currently maintains separate fuel surcharge structures for air exports and imports and has not announced any plans to consolidate them into a single rate, according to its latest publicly available information.
- Latest
- Trending
ADVERTISEMENT
