UPS Raises Domestic Fuel Surcharge by 1%, Third Increase This Year
UPS raised its domestic fuel surcharge by 1% on March 9, its third increase this year, pushing average surcharges toward the 21–34% range charged by major carriers. The operator also implemented temporary U.S.–Middle East shipping fees as fuel costs jumped over 30% in the past month.
1. Fuel Cost Surge
Fuel prices for gasoline and diesel have climbed over 30% in the last month, with gasoline rising nearly $1 to about $4 per gallon, pressuring all parcel carriers’ operating costs.
2. UPS's Third Surcharge Hike
On March 9, UPS increased its domestic fuel surcharge by 1%, marking its third hike this year, as part of its standard mechanism tying fees to external fuel indexes.
3. Temporary Middle East Fees
UPS introduced additional temporary charges on shipments between the U.S. and Middle East to offset higher fuel and geopolitical risks in that region.
4. Competitive Pricing Landscape
Major carriers maintain fuel surcharges ranging from 21% to 34%, while the Postal Service plans an 8% fee; UPS’s adjustments aim to sustain margins amid volatile energy costs.