FedEx Domestic Fuel Surcharge Update

The Ground breakpoint rises from $4.99 to $5.71 per gallon of diesel, while the domestic air breakpoint increases from $3.01 to $3.51 per gallon of jet fuel. The adjustment bands remain unchanged: Ground moves 0.25 percentage points per $0.09 above its breakpoint and per $0.27 below it; domestic air moves 0.25 points per $0.05 above its breakpoint and per $0.21 below it. Moving the breakpoints upward means slower surcharge reductions begin at higher fuel prices. This follows FedEx’s June 1 changes, which raised the breakpoints while leaving higher-band percentages unchanged; November raises both. Domestic express freight also increases $0.024 per rated pound at jet fuel prices of $3.51 and above, with larger differences possible below that level.

UPS’s November 2 update follows the same approach, but FedEx’s 1.50-point increase is three times UPS’s 0.50-point increase in the higher-price bands. After both revisions, FedEx’s published percentages are 0.50 points above UPS’s at diesel prices of $5.80 and above and jet fuel prices of $3.56 and above. At lower benchmarks, the gap varies between 0.25 and 0.50 points because the carriers’ brackets do not align. These comparisons hold fuel prices constant; actual weekly charges also reflect benchmark movements and contractual terms.

💡 Higher costs at unchanged fuel prices: FedEx adds 1.50 percentage points in the higher-price bands.
💡 The UPS relationship reverses: FedEx moves from 0.50 points below UPS under the pre-November schedules to 0.25–0.50 points above after both updates.
💡 Less relief as fuel falls: The increase versus FedEx’s current schedules can reach 3.00 points for Ground and 3.50 points for domestic air packages.
💡 Budget beyond base rates: Include fuel on applicable accessorials and peak fees, then apply negotiated fuel terms.