Federal Manager's Daily Report

Unlike some private shippers, the USPS does not add fuel surcharges to its fees and could benefit from not having to explain why those fees are not reduced proportionately with the decrease in energy costs as those shippers now find themselves compelled to do, according to an analysis by the Postal Service IG.

“Fuel surcharges are common in the transport industry, from taxis and airlines to moving and delivery companies. Many of these industries instituted fuel surcharges to smooth out costs when fuel prices were skyrocketing. But in times of low fuel prices, like now, customers see these surcharges as a blatant money-grab,” it said.

Large private sector shippers “tie their fuel surcharges to the price of diesel, which hasn’t dropped as far or as fast as gasoline prices. Furthermore, [two major shippers] recently adjusted how they calculate fuel surcharges, resulting in surcharges that won’t drop as much as they would have under the previous calculation. In some cases, fuel surcharges are even going up,” it said.

USPS does not impose such a surcharge, nor does it charge higher prices for delivery on peak days or impose as significant a differential on package delivery by weight. “The Postal Service might look even more attractive these days with its relatively straightforward, consistent pricing . . . customers are not too interested in the whys and wherefores – they just want low-priced, reliable, fast delivery,” it said.