FedEx implemented new surcharges for express, domestic freight, ground, and home delivery services on 1/12. UPS announced that from 5/1/2026, it will increase fuel surcharges for similar services, including UPS ground domestic, ground saver, and domestic air freight.

Experts indicate that FedEx's surcharge increase is about 1,5%, while UPS adjusted its increase by 1%. Fuel surcharges are updated weekly based on diesel and jet fuel prices. Under the new calculation, if diesel prices are 3,85 USD per gallon, a package sent via UPS ground will incur a 21,75% surcharge, up from the current 20,75%.

A worker loads packages onto a FedEx truck in San Francisco. Photo: Supply Chain Dive

Fuel surcharges are a primary factor driving a sharp increase in ground shipping costs in 2025. As adjustments continue, logistics consultants are closely monitoring UPS and FedEx increases against actual fuel price developments.

Brian Byrd, chief operating officer at TransImpact, stated that from January to date, ground fuel base prices have risen 8,62%, leading to a total 24,3% increase in UPS's domestic fuel surcharge. For air fuel, a 2,95% increase has caused UPS's surcharge to rise 23,5% over the same period.

Adjusting surcharges helps improve carriers' business performance. During the Q1 earnings call on 18/9, Brie Carere, executive vice president and chief customer officer at FedEx, mentioned that increased fuel surcharge indices have improved revenue per package amidst competition while maintaining "reasonable" prices.

"Fuel surcharges provided significant support in Q1, and this trend will continue throughout the year," Carere said.

By Khanh Lam (Source: Supply Chain Dive)