- Global fuel prices have surpassed $100 per barrel for international shipping
- Fuel is the second-largest expense for a shipping fleet and is roughly 24% of a truck’s costs
- Rising fuel prices will impact everyone, especially shippers with big fleets
Global fuel prices have surpassed $100 per barrel for international shipping. As fuel prices continue to increase to record highs, major shipping carriers have to increase their diesel fuel prices with surcharges.
This blog will cover imperative information on fuel surcharges to watch for international shipping better to understand the steep fuel price increase.
Table of Contents
Why Are Fuel Prices Going Up?
Global oil prices are mainly rising due to the ongoing war in Ukraine. In addition, fuel is the second-largest expense for a shipping fleet and is roughly 24% of a truck’s costs.
With the ongoing conflict, shippers should expect fuel surcharges as trucking companies and small shipping couriers pass on the rising costs. Fuel surcharges are an additional charge or fee imposed on your shipping cost. So as diesel prices are likely to climb as oil companies pull business from Russia, merchants and shippers should keep in mind the rising costs.
Which Countries Are Experiencing Fuel Surcharges?
Rising fuel prices will impact everyone, especially shippers with big fleets. Countries and regions that will be affected by the fuel surcharges include countries such as:
- The United States
- The United Kingdom & other European countries
- Asia Pacific (APAC)
- Latin America
- The Middle East
The Russian-Ukrainian conflict shows no sign of deescalating, so prices will likely continue to rise.
Related blog: How to Avoid 6 Common Shipping Mistakes
Surcharge Fuel Prices with Major Couriers
Major couriers are imposing fuel surcharges for their courier services. Typically, shipping couriers increase their fuel surcharge one penny for every 6 cent increase in diesel price above the established baseline fuel price. This section will go over the base rates for fuel surcharges with UPS and FedEx.
UPS fuel surcharge rate
UPS fuel surcharges are between 15-25% for all ground, domestic air, international air exports, and international air imports. Below is the breakdown of the rising fuel surcharge from the past months.
|Effective Start Date||Ground Surcharge||Domestic Air Surcharge||International Air Export Surcharge||International Air Import Surcharge|
FedEx surcharge fuel oil prices
FedEx Express and FedEx Ground surcharge rates are up between 16-23% for shipments. Below is a breakdown of the surcharge rates.
To learn more about the breakdown of FedEx surcharge rates, visit their website for more price information.
How Are Surcharge Fuel Costs Calculated?
There are two ways to calculate fuel surcharge rates to better understand the rising average fuel price.
To calculate the fuel surcharge, follow this formula below:
Current fuel price - Fuel price baseline / average miles per gallon (mpg)
Now, let’s try calculating the fuel surcharge with an example.
$5.25 per gallon (fuel price) - $2.50 (fuel price baseline) = $2.75 per gallon / 6.0 (average mpg) = $0.46 per mile
Alternatively, you can use a fuel surcharge calculator to calculate the costs more efficiently. This way, you can ensure your numbers are accurate and correct.
Avoid Surcharge Oil Prices with Easyship
It’s essential to understand the surcharge amount for rising diesel fuel prices. With global oil prices rising to over $100 per barrel, major carriers are increasing their fuel price to offset the higher diesel prices.
With the ongoing conflict between Russia and Ukraine, merchants and shippers can expect these surcharge rates to increase.
Easyship can help eCommerce merchants reach their global customers with high-volume discount shipping rates up to 89% off so that merchants can pay for reliable shipping at a fraction of the cost. In addition, with Easyship, users get instant access to tools such as the following:
- Easyship Shipping Rates Calculator: Access high-volume discounts from major couriers. Plus, get instant access to delivery lead times from premium shipping couriers
- Global Fulfillment: Easyship has warehouse partners on four continents so that you can reach your customers all across the world. Plus, Easyship helps scale up fulfillment capabilities without increasing overhead costs
- Duties & Tax Visibility: Easyship works out all duties and taxes for your international shipments so you can handle your international orders with ease. Calculate your duties for overseas shipments here
Prepare for the rising fuel prices by connecting with a shipping platform that can help you curb these challenges with features like global fulfillment and high-volume discounts.
Ready to ship? Sign up for a FREE Easyship account and get instant access to high-volume discounts to avoid surcharge fuel prices
Surcharge Fuel Prices FAQ
When did the fuel surcharge start?
Fuel surcharges have been quickly rising since the start of the Russian-Ukrainian conflict.
What is a surcharge?
Fuel surcharges are an additional charge or fee imposed on your shipping cost.
Is there a source for the fuel surcharge calculated?
You can use a fuel surcharge calculator to calculate the costs more efficiently.
If you found this article informative, then you may enjoy the following: