UPS and FedEx are both changing the way they calculate fuel surcharges.

UPS announced it will lower its current fuel surcharge for customers worldwide by 40 percent - from 1.25 percent to 0.75 percent - as it shifts to an index-based surcharge.
The shift to an index system is intended to help UPS respond to fuel price fluctuations and help customers realize savings when fuel prices decline.
The current fuel surcharge rate, implemented in August 2000, is the lowest in the industry even at 1.25 percent, according to UPS. The reduction to 0.75 percent will take effect Dec. 10 and will remain in place at least until Feb. 3, 2002.
After Feb. 3, adjustments will take effect on the first Monday of each month and will be based on the U.S. Energy Department's On-Highway Diesel Fuel Prices. Changes to the UPS fuel surcharge will reflect prices from two months prior. Under the new system, if on-highway diesel fuel prices are less than $1.15, there will be no surcharge. From $1.15 to $1.23, the surcharge will be .5 percent. $1.23 to $1.31 will be .75 percent, $1.31 to $1.39 will be 1 percent, $1.39 to $1.47 will be 1.25 percent, and $1.47 to $1.55 will be 1.5 percent. For diesel fuel prices at or above $1.55, the fuel surcharge will be 1.5 percent plus an additional .25 percent for each additional 8 cents in fuel prices.
Customers will be able to check on fuel index changes and get other information about the fuel surcharge at UPS's Web site at ups.com.
At FedEx, the surcharge percentage is now subject to adjustment monthly using a rounded average of the U.S. Gulf Coast (USGC) 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 fuel surcharge to prevailing market prices for jet fuel, and should help FedEx Express and its customers respond more quickly to changes in fuel prices in the marketplace.
Changes to the FedEx Express fuel surcharge will be applied effective the first Monday of each month. If jet fuel prices are less than 52 cents per gallon, there will be no surcharge. If they are at least 52 cents but less than 54 cents, the surcharge will be .5 percent. From 54 cents to 58 cents the surcharge is 1 percent, from 58 cents to 62 cents it's 1.5 percent, from 62 cents to 66 cents it's 2 percent, from 66 cents to 70 cents it's 2.5 percent, and so on.