Summary

UPS and FedEx raised fuel surcharges across all service categories in the three weeks ending Sept. 21, 2026, as record diesel prices put further pressure on an already strained fuel market. This article explains how carrier fuel surcharges work, what is driving the fuel crisis, why an export ban is unlikely to lower your surcharges, and where your carrier agreement may leave you most exposed.

Key takeaways

• Fuel surcharges are moving faster than any other charge on your parcel invoices right now.
• The UPS international air import surcharge reached 47.75% effective Sept. 21, 2026, the highest rate on either carrier's schedule.
• Both carriers raised ground fuel surcharges by 2 percentage points, domestic air and express by 3.5 points, and international by 4.25 points in three weeks.
• International fuel surcharges are climbing fastest, would get no direct relief from a diesel ban, and are the ones most often left out of negotiated agreements.

Fuel surcharges are moving faster than any other charge on your parcel invoices right now. Diesel and jet fuel prices keep climbing as the conflict in the Middle East continues, and this week UPS and FedEx surcharges reached unprecedented percentage levels. Here is what is driving the diesel increases and what you can do about them.

Fuel Surcharges Are Climbing in Lockstep on Both Carriers

UPS and FedEx both apply fuel surcharges as a percentage of your transportation charges, and both reset those percentages every week. Ground services track the national average on-highway diesel price, while air and international services track jet fuel prices. Because each percentage is tied to a published fuel price, a rising fuel market raises your costs automatically, without either carrier announcing a general rate increase or revising its published surcharge schedule.

The fuel market is rising fast. As carriers began announcing their peak season pricing, the U.S. average retail diesel price reached $6.529 per gallon on Sept. 21, up from $6.285 a week earlier and $5.967 the week before that, according to the U.S. Energy Information Administration (EIA). That $0.562 increase over two weeks drove almost all the surcharge increases on both carrier networks, and UPS and FedEx moved in lockstep, rising by identical amounts in every service category, based on the published UPS fuel surcharges and FedEx fuel surcharge rates:

International fuel surcharges are climbing faster than any other category. At the current UPS international air import rate of 47.75%, an international shipment with $100 in transportation charges carries $47.75 in fuel surcharge alone. International fuel is also the surcharge most often left out of negotiated carrier agreements, which means the fastest-growing cost frequently has the least protection.

Would a U.S. Diesel Export Ban Bring Fuel Surcharges Down?

The White House was weighing a possible ban on U.S. diesel exports to ease domestic prices, but industry experts warned the move could backfire, Supply Chain Brain reports. The United States supplies about 20% of diesel traded by sea worldwide each day, so pulling that fuel from the global market would tighten the same global refining crunch pushing U.S. prices up. A short ban would likely lower prices in the Gulf Coast and Midwest, where fuel meant for export would flow back into local markets, while the East Coast, which depends on barged Gulf Coast diesel and imports, could see prices rise. A ban lasting months or longer would carry a bigger risk: refineries would likely scale back production, and crude oil prices could climb.

Regardless, a diesel export ban would be unlikely to bring meaningful relief to your parcel fuel surcharges. Because both carriers set ground fuel surcharges from the national average diesel price, higher East Coast prices would offset much of a regional drop elsewhere, and your surcharge follows the national number no matter where your packages move. Furthermore, a ban targeting diesel offers no direct relief on jet fuel, the price behind the air and international surcharges that are climbing fastest.

How to Protect Your Carrier Agreement From Rising Fuel Surcharges

Fuel surcharges are likely to stay elevated, and many transportation teams have already negotiated fuel discounts on domestic services. If your agreement does not include one, ask for it, and if you already have one, ask for a better one. Then confirm whether your agreement covers international fuel. If it does not, push your carrier for a reduction before the next diesel increase adds another point.

TransImpact's Parcel Contract Negotiation team helps you secure fuel discounts across domestic and international services and hold your carriers to them as fuel prices climb. Find out how your current agreement leaves room to negotiate.

FAQs

How often do UPS and FedEx change fuel surcharges?

UPS and FedEx both update fuel surcharge percentages weekly, based on diesel and jet fuel prices published by the EIA. Air and international surcharges follow jet fuel on their own percentage schedules, which is why they run higher than ground surcharges.

Can you negotiate fuel surcharges with UPS and FedEx?

Yes. Fuel discounts are a common part of negotiated carrier agreements, and they can apply to domestic services, international services, or both.

Will fuel surcharges keep rising?

Fuel surcharges follow fuel prices, so they will keep climbing as long as diesel and jet fuel do.