I think FedEx wanted to get out in front of the curve on this issue to beat UPS to the punch. Having a 5.5% general rate increase, but reducing the fuel-surcharge index by 2% gives a 3.5%—net average rate increase. They wanted to get that out there first, because there is a huge disparity between UPS and FedEx in terms of fuel surcharges. FedEx is at 20% and UPS is at 12.5%. |
Shippers need to monitor the level of service they're using. When it comes to fuel, the carrier can help shippers identify air to ground shipments—sometimes it's hard to believe but they will do it to keep the business. |
We are glad that the DOT (U.S. Department of Transportation) took another look and came to the proper decision. |