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Carrier Fuel Surcharges: How They Work and Current Rates
Understand how carrier fuel surcharges work and track current rates. Learn how fuel costs impact your shipping expenses.
January 17, 20263 min read21 views
Carrier Fuel Surcharges: Complete Guide
Fuel surcharges are variable fees that change weekly based on fuel prices. Understanding them helps budget accurately.
How Fuel Surcharges Work
| Aspect | Details |
|---|---|
| Basis | DOE diesel fuel index |
| Update frequency | Weekly (Mondays) |
| Applied to | Base rate (not surcharges) |
| Minimum | Usually 5-6% |
| Maximum | No cap |
Current Fuel Surcharge Rates*
| Carrier | Ground | Express | Date |
|---|---|---|---|
| UPS | 8.5% | 8.5% | Current |
| FedEx | 8.75% | 8.75% | Current |
| USPS | Included | N/A | Always |
How Surcharges Are Calculated
Example: $20 base shipment
| Fuel Rate | Surcharge | Total |
|---|---|---|
| 6% | $1.20 | $21.20 |
| 8% | $1.60 | $21.60 |
| 10% | $2.00 | $22.00 |
| 12% | $2.40 | $22.40 |
Historical Fuel Surcharge Ranges
| Year | Low | High | Average |
|---|---|---|---|
| 2023 | 6.5% | 11.5% | 8.5% |
| 2024 | 6.0% | 10.5% | 7.8% |
| 2025 | 5.5% | 9.5% | 7.2% |
Fuel Index Correlation
| DOE Index | Approximate Surcharge |
|---|---|
| $2.50/gal | 5.5% |
| $3.00/gal | 7.5% |
| $3.50/gal | 9.5% |
| $4.00/gal | 11.5% |
Impact on Shipping Costs
| Monthly Spend | 6% Fuel | 10% Fuel | Difference |
|---|---|---|---|
| $5,000 | $300 | $500 | +$200 |
| $10,000 | $600 | $1,000 | +$400 |
| $25,000 | $1,500 | $2,500 | +$1,000 |
USPS Advantage
USPS doesn't charge separate fuel surcharges:
| Carrier | Fuel Handling |
|---|---|
| UPS | Separate surcharge |
| FedEx | Separate surcharge |
| USPS | Built into rates |
| DHL | Separate surcharge |
Tracking Fuel Surcharges
Where to find current rates:
| Carrier | Location |
|---|---|
| UPS | ups.com/fuelsurcharge |
| FedEx | fedex.com/en-us/rates |
| DHL | dhl.com/fuel-surcharge |
Fuel Surcharge Strategies
1. Budget for Variability
| Budget Method | Approach |
|---|---|
| Conservative | Use 10% in projections |
| Moderate | Use current + 2% |
| Aggressive | Use current rate |
Some carriers offer fuel caps for high-volume shippers.
3. Shift to USPS
When fuel surcharges spike:
| UPS + 12% Fuel | USPS (no fuel) |
|---|---|
| $15.00 + $1.80 = $16.80 | $14.00 |
Weekly Update Schedule
| Carrier | Announcement | Effective |
|---|---|---|
| UPS | Thursday | Monday |
| FedEx | Thursday | Monday |
| DHL | Friday | Monday |
Fuel Surcharge on Discounted Rates
| Scenario | Calculation |
|---|---|
| List $20, 40% discount | $12 × fuel% |
| Not list × fuel | Discounted × fuel |
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