Business
Fuel Surcharges Are Pushing Up Package-Delivery Costs
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.
In the early weeks of March, it went even higher, accounting for as much as 26% of the overall shipping cost, ShipMatrix said.
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