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Fuel Surcharges Are Pushing Up Package-Delivery Costs [View all]
March 20, 2026 6:00pm ET
Fuel Surcharges Are Pushing Up Package-Delivery Costs
By Esther Fung
{Picture: UPS packages being delivered in Chicago.}
UPS packages being delivered in Chicago. Vincent Alban/Reuters
FedEx and United Parcel Service have dramatically raised their fuel surcharges in recent weeks as the price of oil has increased amid the turmoil in the Middle East.
It’s a continuation of a yearslong trend: Fuel surcharges have made up an increasing portion of overall shipping charges and driven up the cost of shipping at both companies in recent years. The charges accounted for 19.4% of the overall shipping cost on average for 2025, compared with 6.3% in 2020, according to data from ShipMatrix, a parcel data consultancy.
{snip}
Fuel Surcharges Are Pushing Up Package-Delivery Costs
By Esther Fung
{Picture: UPS packages being delivered in Chicago.}
UPS packages being delivered in Chicago. Vincent Alban/Reuters
FedEx and United Parcel Service have dramatically raised their fuel surcharges in recent weeks as the price of oil has increased amid the turmoil in the Middle East.
It’s a continuation of a yearslong trend: Fuel surcharges have made up an increasing portion of overall shipping charges and driven up the cost of shipping at both companies in recent years. The charges accounted for 19.4% of the overall shipping cost on average for 2025, compared with 6.3% in 2020, according to data from ShipMatrix, a parcel data consultancy.
{snip}
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