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Inside the carrier network

What does a package really cost to deliver?

A hypothetical cost allocation for one ground package, from pickup to the doorstep. Change each component to see the modeled cost and margin. These are illustrative assumptions, not UPS or FedEx operating data.

Your inputs

Defaults update weekly from live data
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Results

Modeled cost per package$10.00
Modeled margin per package$1.60
Fuel share of modeled cost7.0%

Hypothetical cost stack

Pickup$0.85
Sorting$1.10
Linehaul$1.15
Last-mile delivery$3.40
Fuel, all legs fuel$0.70
Facilities$0.60
Other labor and benefits$1.30
Overhead$0.90
Modeled cost per package$10.00
  • All defaults are hypothetical and adjustable. Carriers do not publish package-level cost allocations.
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How this is calculated

Sum of the component costs you set, compared with revenue per package.

Rates shown as defaults come from carrier publications or each carrier’s published table applied to the EIA price; see the methodology. Estimates and examples are labeled. Results are illustrative and do not represent any carrier’s reported financial results.

Questions

How much of a package’s cost is fuel?

Carrier filings show fuel at roughly 4 to 7 percent of total operating costs, which this model’s default reflects.

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