Both major parcel carriers announced pricing changes going into effect this week that could impact both domestic and international shipping costs.

FedEx Adds International Demand Surcharge for Middle East Shipments

FedEx introduced a new international demand surcharge for shipments moving between the U.S. and Zone K (Middle East). The surcharge took effect March 5, 2026 and will remain in place until further notice.

The charges are:

• $0.50 per pound for exports from the U.S. to Zone K destinations
• $0.70 per pound for imports from Zone K into the U.S.

Demand surcharges are typically implemented when carriers experience capacity constraints, elevated operating costs, or network disruptions.

Shippers moving goods to or from the Middle East should factor this temporary surcharge into landed cost calculations, especially for heavier shipments where per-pound fees can accumulate quickly.

Resources:
Export Demand Surcharge
https://www.fedex.com/content/dam/fedex/us-united-states/services/3-5-26_US-Export-Demand-Surcharges.pdf

Import Demand Surcharge
https://www.fedex.com/content/dam/fedex/us-united-states/services/3-5-26_US-Import-Demand-Surcharges.pdf

UPS Announces Domestic Fuel Surcharge Increase

UPS also announced a 1% increase to its domestic fuel surcharge index, effective March 9, 2026. The change applies to U.S. Ground Domestic, Ground Saver, and Domestic Air services, and comes just two months after the last domestic fuel surcharge increase.

Fuel surcharges at UPS are tied to fuel price indexes and are adjusted based on data from the U.S. Energy Information Administration (EIA). These surcharges are applied as a percentage of shipping charges and certain accessorial fees, meaning even small percentage changes can affect overall parcel costs.

With this adjustment, UPS’s domestic fuel surcharge will be approximately 0.5% higher than FedEx’s equivalent surcharge, widening the gap between the two carriers.

Resource:
UPS Fuel Surcharge Tables
https://assets.ups.com/adobe/assets/urn:aaid:aem:13ea22a9-bd18-49ee-a87c-c3b6f761a002/original/as/us-domestic-fuel-flyer.pdf

What Shippers Should Watch

Together, these updates highlight an ongoing trend in parcel pricing: carriers increasingly using surcharges to adjust pricing outside of annual rate increases. For shippers, this makes ongoing monitoring of carrier updates critical to avoid unexpected cost increases.

Keeping an eye on fuel indexes, demand surcharges, and regional disruptions can help logistics teams quickly understand how carrier changes may impact shipping budgets.