UPS and FedEx fuel surcharge explained
The fuel surcharge is a percentage added to most parcel charges. It is one of the largest add-ons on a carrier invoice, and it changes weekly. Errors in the percentage itself are rare, but fuel quietly multiplies every other error on the invoice, which is why it matters for an audit.
How it works
Both UPS and FedEx publish fuel surcharge tables tied to a fuel price index. Each week the carrier takes the index value and looks up the matching percentage. Ground and air services have separate tables, and international shipments can have their own.
What it applies to
The percentage is applied to the transportation charge and, in most cases, to many accessorial charges as well: residential delivery, delivery area surcharges, additional handling and others. That means every wrong surcharge on an invoice also carries a little wrong fuel on top.
A worked example
Say a parcel is wrongly billed a $5.95 residential surcharge and the fuel surcharge that week is 18% (an illustrative figure; check the carrier's current table). The fuel on that fee adds about $1.07, so the real overcharge is about $7.02, not $5.95. Across hundreds of parcels, leaving the fuel out of a dispute leaves real money behind.
What to check
Compare the effective fuel percentage on each shipment with the published rate for its ship date and service. Shipments of the same service in the same week should carry about the same percentage: an outlier is worth questioning. And when you dispute any surcharge, include the fuel charged on it.
Can you negotiate it?
Larger shippers sometimes negotiate a fuel surcharge discount or cap in their carrier agreement. If you have one, make sure it actually appears on the invoices: a negotiated discount that silently stops being applied is a common and expensive error.
FAQ
Why did my fuel surcharge change this week? The percentage follows a weekly fuel price index, so it moves with fuel prices.
Is the fuel surcharge refunded when I dispute a charge? When a surcharge or weight correction is approved, the fuel calculated on it should be credited too. Ask for it explicitly in the dispute.
Automatic checks
ParcelAudit flags fuel percentages that don't match the rest of the week's shipments for the same service, along with weight, duplicate and surcharge errors. Your first audit is free.
Prefer not to file anything yourself? Our done-for-you service finds the overcharges and files the disputes with the carrier for you, with nothing upfront.