UPS to trim fuel surcharge

Effective December 10, 2001, United Parcel Service says it will reduce its fuel surcharge by 40 percent, from 1.25 percent to 0.75 percent. This reduced surcharge will remain in effect through February 3, 2002.

Beginning February 4, 2002, the company will introduce an index-based surcharge, to be adjusted monthly. Changes to the surcharge will be effective the first Monday of each month, and posted approximately two weeks prior to the effective date. The surcharge will be based on the National U.S. Average On-Highway Diesel Fuel Prices reported by the U.S. Department of Energy for the month that is two months prior to the adjustment. (UPS says research has shown this index is highly correlated with other major fuel price indices worldwide.)