FedEx and UPS Increase Fuel Surcharges by Several Points; USPS to Add 8% Fee
FedEx and UPS raised fuel surcharge rates by several percentage points in March, triggering exponential increases across all shipping fees tied to diesel and jet fuel prices. The U.S. Postal Service will impose an 8% temporary surcharge on package deliveries from April 26 as shippers negotiate discounts and seek alternative carriers.
1. Fuel Surcharge Increases
In March, FedEx and UPS each raised their fuel surcharge rates by several percentage points, applying the hikes across nearly all shipping service charges tied to diesel and jet fuel prices. This move has driven weekly ground surcharge percentages markedly higher since early Q1.
2. USPS 8% Temporary Hike
The U.S. Postal Service will implement an 8% temporary surcharge on Ground Advantage and other package services starting April 26, noting transportation cost increases driven by rising fuel expenses and contracted logistics.
3. Shipper Mitigation Strategies
Shippers can now negotiate fuel surcharge discounts more broadly than in the past, though rising diesel prices and frequent fee recalculations may limit savings. Many customers are also exploring alternative delivery providers to secure more stable or lower surcharge rates.