Navigating UPS Fuel Surcharges: A Comprehensive Guide for 2025

UPS implements a fuel surcharge to adjust for fluctuations in fuel prices, ensuring that shipping costs remain aligned with current market conditions. This surcharge is a variable fee added to the base shipping rate and is influenced by factors such as the type of service selected and prevailing fuel prices.

Calculation of Fuel Surcharges

The fuel surcharge is calculated based on the U.S. Department of Energy’s published fuel price indices. For ground services, the surcharge is tied to the National U.S. Average On-Highway Diesel Fuel Price, while air services reference the U.S. Gulf Coast Jet Fuel Price. These surcharges are adjusted weekly to reflect current fuel costs.

Services Affected by Fuel Surcharges

Fuel surcharges apply to a range of UPS services, including:

• UPS® Ground
• UPS® Air Services
• International Air-Export and Import
• UPS SurePost®

Additionally, certain accessorial charges, such as residential delivery and pickup services, are also subject to fuel surcharges .

Recent Changes and Updates

In March 2025, UPS announced that fuel surcharges would now apply to weekly scheduled pickup fees, effective March 24, 2025. This change reflects UPS’s ongoing efforts to align surcharges with operational costs.

Impact on Shipping Costs

Fuel surcharges can significantly impact overall shipping costs, especially for businesses with high shipping volumes. For instance, a 15% fuel surcharge on a $100 shipping charge would add an additional $15 to the total cost. It’s essential for businesses to monitor these surcharges and adjust their shipping strategies accordingly.

Strategies to Mitigate Fuel Surcharge Costs

Businesses can adopt several strategies to manage and potentially reduce the impact of fuel surcharges:

• Optimize Shipping Methods: Choosing ground shipping over air services when feasible can lower fuel surcharge rates.
• Consolidate Shipments: Combining multiple orders into a single shipment can reduce the number of deliveries and associated surcharges.
• Negotiate with Carriers: Engaging in discussions with UPS representatives may lead to more favorable surcharge terms, especially for high-volume shippers.
• Monitor Fuel Prices: Staying informed about fuel price trends can help businesses anticipate surcharge changes and plan accordingly.

Future Outlook

As fuel prices continue to fluctuate, UPS is likely to maintain its practice of adjusting fuel surcharges regularly. Businesses should remain vigilant and proactive in managing their shipping strategies to mitigate potential cost increases.

FAQs

How often does UPS update its fuel surcharge rates?

UPS updates its fuel surcharge rates weekly, based on the U.S. Department of Energy’s published fuel price indices .

Do fuel surcharges apply to all UPS services?

Fuel surcharges apply to most UPS services, including ground, air, and international shipments, as well as certain accessorial charges .

Can businesses negotiate fuel surcharges with UPS?

Yes, businesses, especially those with high shipping volumes, can negotiate surcharge terms with UPS representatives to potentially secure more favorable rates.

How can I stay informed about current fuel surcharge rates?

UPS publishes current fuel surcharge rates on its official website, providing weekly updates based on fuel price changes .

Are there tools available to help calculate shipping costs including fuel surcharges?

Yes, UPS offers online calculators and tools that allow users to estimate shipping costs, including applicable fuel surcharges.