When it comes to trying to ship a package, costs can get expensive fast. The type of packaging you're using and the speed with which you need it to be delivered—along with with the size and weight of your shipment—all start to add up. With that in mind, finding out that prices are getting even higher soon isn't exactly welcome news. FedEx just confirmed that it is making a change to its fees, which will require you to pay more starting next month. Read on to find out how the shipping company is raising prices in April.
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FedEx will increase its fuel surcharge next month.
iStockAs gas prices rise, your shipping costs start to increase, too. Nexstar recently reported that FedEx is planning to raise its fuel surcharge for all three of its shipping services next month: Express, Ground, and Freight. According to the shipping company, new price ranges will go into effect on April 4.
Fuel surcharges typically vary week-to-week based on the price per gallon of diesel regardless, but the entire table will be higher than what is currently being charged. For example, CBS-affiliate WBNS-TV in Columbus, Ohio, reported that the FedEx Ground's domestic fuel surcharge is 16.25 percent right now when the price per gallon of diesel is between $5.17 and $5.26. But with the increase in April, that same situation would trigger a higher surcharge of 18 percent instead.
The company says it regularly raises these prices.
iStockGas prices are higher in the U.S. now that they've ever been. According to the American Automobile Association (AAA), the highest average cost for gas in the nation was reported on March 11, with regular unleaded gas at $4.331 per gallon. And now, the cost is still quite high at $4.246 per gallon as of March 28.
But while fuel is more costly than ever, this is hardly the first time FedEx has chosen to raise its fees for fuel costs. "FedEx regularly reviews its fuel surcharge,” the company said in a statement to Nexstar. "This change will allow FedEx to provide customers the best service possible as rising fuel costs add to the cost to serve.”
These surcharges are added to the total cost of shipping.
ShutterstockWith the increase in fuel surcharges for April, you'll likely notice that your shipping costs with FedEx are higher than what you've paid in the past. "A fuel surcharge is an additional fee on top of the shipping rate that carriers like FedEx and UPS charge their customers to ship their packages," Stamps.com explains, adding that the fee is true to its name—intended to cover fuel costs.
And this fee is added to a company's standard shipping rate, according to Refund Retriever. "Fuel surcharges allow for UPS and FedEx to keep their base shipping rate while making the necessary changes to cover any increase in fuel price," the shipping site explains.
UPS has also been increasing its fuel surcharges.
iStockFedEx is not alone in feeling the impact of rising gas prices. According to Nexstar, UPS' fuel surcharges have been increasing over the last few weeks. This week the company's ground surcharge is at 15 percent, compared to just 13 percent two weeks prior and 12.75 percent at the start of the month.
"UPS updates its fuel surcharge periodically to reflect the changes in the cost we incur for fuel to serve our customers," a spokesperson for the company told Nexstar. "Our delivery charges are competitive, and our customers choose UPS because we offer a broad range of shipping, tracking and customer-service solutions and industry-leading service. The impact of these adjustments is included in the price we charge our customers."
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