# Does FedEx hedge fuel?

## Does FedEx hedge fuel?

While some companies use the futures market to hedge their fuel costs, the two delivery companies buy most of their fuel at near market prices. FedEx disclosed its latest surcharge-index increase without fanfare on its website late last month, and it hasn’t been popular.

How much does FedEx spend on fuel a year?

In the fiscal year of 2021, the FedEx Express segment of FedEx Corporation spent just over two billion U.S. dollars on jet fuel.

### How is a fuel surcharge calculated?

To use the formula to calculate your fuel surcharge, subtract your fuel threshold amount from the actual price per gallon and divide that amount by vehicle’s miles per gallon. This gives you your per-mile surcharge amount.

What is peak surcharge in FedEx?

Peak — Residential Delivery Charge3 FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate® packages). \$0.30 per package. \$0.60 per package.

## What is a normal fuel surcharge?

Current national average fuel surcharge rate Currently, the UPS average fuel surcharge is 8% for ground and 6.75% for domestic air. How to calculate fuel surcharge? National fuel surcharge calculation formula: Threshold fuel price: If fuel costs more than the base price, the surcharge will be applied.

Who sets the fuel surcharge?

US Department of Transportation
Explaining the Fuel Surcharge It’s estimated by the US Department of Transportation that fuel charges will fluctuate around \$0.10 every week. The fuel surcharge was established to help provide an average cost for diesel or the fuel used by carriers over a determined period of time.

### What is a 100 fuel surcharge?

When you pay the surcharge for diesel fuel, it goes to either the broker or the driver as part of the carrier company. Thus, when the carrier mentions a 100 fuel surcharge, what they’re talking about is that the entirety of the surcharge should be allocated to the driver.

What is the fuel surcharge formula?

Fuel Surcharge Formula Calculation. To use the formula to calculate your fuel surcharge, subtract your fuel threshold amount from the actual price per gallon and divide that amount by vehicle’s miles per gallon. This gives you your per-mile surcharge amount.

## How to figure fuel surcharge percentage?

Figuring Fuel Surcharge Percentage To figure the fuel surcharge percentage, you must calculate the average cost per gallon. Add up the total fuel costs for the trip and divide that by the total gallons bought. For example, if you pay \$3,890 for 1,000 gallons of diesel, you get an average per gallon cost of \$3.89.

What is fuel surcharge index?

Fuel Surcharge Index is an easy to use system that creates fairness and simplifies fuel surcharge calculations. It offers neutrality for shippers and carriers, low-cost of administration, verifiable/auditable data and a direct link to the day and route of a load. Fuel Surcharge Index = Transparency and Fairness.

### What is a fuel charge?

A fuel charge is the cost for fuel required to provide each kilowatt-hour (kWh) of electricity. A non-fuel charge is the cost other than fuel to produce and deliver electricity to your home or business, including the cost to operate equipment and maintain facilities.