UPS CUTS FUEL SURCHARGE
United Parcel Service said it will lower its fuel surcharge for customers worldwide by 40 percent (from 1.25 percent to 0.75 percent) as it shifts to an index-based surcharge. This reduction will take effect Dec. 10, and will remain at least until Feb. 3.
The shift to an index system is intended to help UPS respond to fuel price fluctuations and help customers realize savings when fuel prices decline, the company said in a statement.
The current fuel surcharge rate, implemented in August, is the lowest in the industry, even at 1.25 percent, UPS said.
“The index provides a prudent way for us to significantly reduce the current surcharge for customers, as we continue to deal with fluctuations in fuel prices,” said John Beystehner, UPS senior vice president of marketing and worldwide sales.
After Feb. 3, adjustments will take effect on the first Monday of each month, and will be based on the U.S. Department of Energy’s On-Highway Diesel Fuel Prices.
Changes to the UPS fuel surcharge will reflect prices from two months prior. The surcharge will continue to apply to all small package transportation charges in all regions of the globe served by UPS.