FedEx Express will lower its current 4 percent fuel surcharge to 3 percent beginning Nov. 5, based on a new index for calculating the charges on U.S. domestic and outbound shipments, the company said yesterday.
The surcharge will be subject to adjustment monthly, using a rounded average of the U.S. Gulf Coast spot price for a gallon of kerosene-type jet fuel, as published monthly by the U.S. Department of Energy. This method more closely links the surcharge to market prices for jet fuel. For example, the surcharge for November will be based on the spot price for jet fuel published for September.
Changes to the FedEx Express fuel surcharge, when calculated according to the USGC index and FedEx trigger points, will be applied effective the first Monday of the month. These trigger points may change from time to time, but information on the fuel surcharge for each month will be available at www.fedex.com two weeks before the surcharge is applicable.
“This approach will provide FedEx Express customers a convenient way to adjust to fluctuations in fuel prices,” said T. Michael Glenn, president/CEO of FedEx Services.
In addition, FedEx launched a new advertising campaign on network and cable television this week.
Five 30-second spots with the tag line “Don't worry. There's a FedEx for that” will highlight the broad portfolio of shipping solutions offered by FedEx.
The campaign was created by BBDO New York.