Fuel prices are plunging, but that hasn’t stopped FedEx and United Parcel Service from charging customers a fuel surcharge.
The price of diesel is down 30% from a year ago, but UPS still charges customers a 5.25% fuel surcharge on top of whatever it would cost to ship a package. FedEx’s fuel surcharge is 4.25% for ground shipments and 2.75% for express shipments.
The surcharges have earned both companies a place on Consumer Reports’ list of “naughty” companies for Christmas 2015.
“Why is it that companies continue to impose fuel surcharges even when prices are relatively low?” the magazine asked.
But the companies both insist this is the way their business clients prefer to have the pricing set, even if individual consumers might balk at the charge.
Both companies also charge an added fee for residential delivery on top of the fuel surcharge. Those residential fees are tacked on when the customer sending a package indicates it is going to a residence.
source: Why you’re still paying a fuel surcharge at FedEx and UPS
Oh don’t worry, we’ll be on that list next year too! 10% price change for parcels next year….so UPS and FedEx can compete.