High fuel costs have led Canada Post and major delivery companies to increase fuel surcharges on parcels, with levels in late November averaging 40 per cent of the base delivery cost. Canada Post’s charge for packages sent within Canada for the week of November 14-20 was 38 per cent and will increase to 39 per cent for the week of November 21-27. FedEx added a 41.5 percent surcharge on domestic FedEx Express and Ground parcels for Nov. 14-20, rising to 42.5 percent the following week. Purolator has kept the fuel surcharge on all shipments at 33.25 percent through Dec. 4, with another announcement expected the week of Nov. 21 on what the surcharge will be from Dec. 5. Purolator has posted this chart on their website showing fuel surcharges and current average fuel prices. (CBC) “Due to fluctuating fuel prices and their changing impact on operating costs, fuel surcharges are a standard industry practice for parcel shippers,” Canada Post said in an email to CBC News when asked for comment on the surcharge. This has been part of our standard practices for almost 20 years and is the norm in the delivery industry given the reliance on fuel consumption.— Canada Post statement “This has been part of our standard practices for almost 20 years and is the norm in the delivery industry given the reliance on fuel consumption.” A Purolator spokesman said the company’s surcharges are determined monthly based on the four-week average price of diesel fuel as reported by Natural Resources Canada. High diesel costs are behind the rise in courier and postal fuel charges. (Ina Fassbender/AFP via Getty Images) “The surcharge applies to all courier shipments offered at Purolator,” Courtney Reistetter said in an email. “Fuel surcharges for courier shipments will be applied to the sum of the service price, additional specialty services and applicable surcharges.” The increases are rising gradually throughout 2022 as the international cost of diesel fuel jumped from $1.46 per liter on average in early January to $2.30 per liter in the week of November 15.
Retailers were also stung
The fuel surcharge doesn’t just affect people sending parcels, it also affects online retailers. The Retail Council of Canada said in July that most companies were trying to absorb the extra costs. “Retail is one of the most competitive industries in Canada, so raising free shipping minimums or directly adding surcharges to consumers is often done as a last resort,” spokeswoman Michelle Wasylyshen said at the time. “Retailers would rather find savings elsewhere.”
