Key facts
- Holiday delivery prices are set to be the highest ever due to rising diesel costs.
- Fuel surcharges from UPS and FedEx are increasing faster than diesel prices.
- The TD Cowen/AFS Freight Index predicts a 5.8% increase in ground delivery prices and a 13.8% jump in express delivery prices for the holiday season compared to last year.
US retailers are facing record-high holiday delivery prices due to soaring diesel costs and changes in how carriers like UPS and FedEx calculate fuel surcharges. The TD Cowen/AFS Freight Index predicts ground delivery prices will be 5.8% higher than last year, with express deliveries jumping 13.8%. The US average on-highway diesel price reached $6.28 per gallon as of October 19. Despite the diesel price, fuel surcharges are rising faster due to calculation changes, with UPS' surcharge at 29.5% and FedEx's at 29% based on the current diesel price. Other delivery firms like OnTrac have also implemented hefty fuel surcharges.