Fuel Surcharges Are Pushing Up Package-Delivery Costs -- WSJ-To The Moon - Tiger Brokers Online Investing Community - To The Moon

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Fuel Surcharges Are Pushing Up Package-Delivery Costs -- WSJ

Dow Jones03-21 06:00

By Esther Fung

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.

FedEx and UPS have said they update their fuel surcharges weekly based on prices published by the U.S. Department of Energy. Diesel prices rose above $5 a gallon this week, up more than 30% from a year ago.

Consumers shipping items from retail stores like FedEx Office and The UPS Store typically pay the highest percentages, while businesses that have negotiated contracts with the parcel carriers typically pay a lower percentage, said Satish Jindel, president of ShipMatrix.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 20, 2026 18:00 ET (22:00 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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