UPS Announces Change to Fuel Surcharge Policy, Effective 8/19/24

Introduced by FedEx in February of 2000 and soon adopted by UPS, the Fuel Surcharge was originally launched as a temporary surcharge. It remains in effect in 2024 and for the foreseeable future.  

Historically, the Fuel Surcharge has been applied to base rates and the following surcharges: 

UPS announced a change to its Fuel Surcharge policy, effective August 19, 2024: the surcharge will apply to a broader range of surcharges, which will increase the shipper’s total cost. Financial impacts will vary by shipper based on their specific business related to the applicable surcharges.  

The Fuel Surcharge will apply to the following additional surcharges: 

It can be challenging to proactively identify and understand the true business impact of surcharge changes and the implementation of dynamic surcharges by carriers. These changes typically increase costs for shippers above and beyond what was planned and budgeted.  

Due to the increased frequency and introduction of these changes allowed by the language in the carrier’s service guide, it is now more important than ever to have visibility into these changes before they become effective and understand their financial impact.  

At Green Mountain, we recommend taking a proactive approach, leveraging alternative solutions as indicated, and executing carrier agreements that minimize the impact of these changes. Our Advisory Services and Analytics teams can help.

Reach out to Green Mountain to unlock and harness the value of proactive advisory services insights today.