The diesel reading has eased
EIA's weekly series reports US on-highway diesel, including taxes, at $6.382 a gallon for September 28, down from $6.529 on September 21. The decline is 14.7 cents a gallon, calculated from those readings.
Before changing a freight allowance, check which fuel index and reference date your agreement uses. Keep the index observation separate from the shipment quote.
Match the rate to the shipment week
The FedEx schedule checked on October 2 lists 29.25% for Ground, Home Delivery, International Ground and pickup services for October 5 through October 11, using September 28 diesel. The prior week's rate is 29.75% through October 4.
Apply the row for the shipment week. Keep the carrier's effective dates beside the booking so a later invoice can be checked against the accepted quote.
Percentage and weight-based charges need different checks
For October 5 through October 11, FedEx lists 31.75% for domestic and US-to-Puerto-Rico packages, $0.704 per pound for domestic and US-to-Puerto-Rico express freight, and 44.25% for export/import. Those services reference September 25 jet fuel.
FedEx says the customer agreement governs. Percentage-based calculations include specified applicable surcharges; weight-based freight uses billable weight. Request the assessed amount or weight so you can reproduce the total.
Compare the delivered cost before approving an expedite
Request a quote with the service, arrival commitment, base transport charge, fuel calculation and other charges itemized. Keep its validity date with the accepted booking.
Compare services that can meet the build date. If you're considering a cheaper component source, include the shipment in that comparison before recording a saving on the BOM.
Keep proposed tariff savings out of the confirmed cost
The newsletter's trade warning also belongs in the landed-cost review. USTR's September 27 statement describes recommendations for goods that could receive better tariff treatment in the future. That announcement alone does not establish an electronics duty reduction.
Ask your customs broker to confirm the applicable classification, origin and entry-date treatment before accepting a duty saving in a supplier comparison. Keep any proposed saving provisional until your broker confirms the measure and your shipment's eligibility.
What Buyers Should Do Now
- Before the next booking: Confirm the effective fuel week and charge basis with the carrier.
- At invoice review: Reconcile the assessed amount or billable weight with the accepted quote and agreement.
- For future freight budgets: Keep base transport and fuel allowances separate, with a review date for each.