HomeAs the holiday shipping rush heats up, major carriers UPS and FedEx have announced significant increases to their fuel surcharge rates—changes that will directly impact domestic and ground delivery costs for businesses and shippers nationwide. With fuel fees already a top driver of rising shipping expenses in 2025, these latest adjustments signal important considerations for budgeting and logistics planning heading into 2026.
Key Details on the Surcharge Increases
The two shipping giants are rolling out their fuel surcharge hikes at different timelines but with similar impacts on overall costs:
- FedEx: Implemented the fuel surcharge increase on December 1, 2025, affecting domestic package services, express freight, ground delivery, and home delivery. Experts peg this hike at 1.5%, marking a notable jump in fee calculations.
- UPS: Will follow suit on January 5, 2026, with a 1% increase to fuel surcharges for core services including UPS Ground (domestic), Ground Saver, and domestic air shipments. For context, if diesel fuel remains at $3.85 per gallon, a UPS Ground domestic shipment will now incur a 21.75% fuel surcharge—up from the current 20.75%.
Both carriers set their fuel surcharge rates weekly, tied to average diesel and jet fuel costs. This dynamic pricing model means surcharges can fluctuate further as fuel markets shift, adding another layer of uncertainty for shippers.
Why This Matters for Your Bottom Line
Fuel surcharges have been a primary contributor to elevated ground shipping costs throughout 2025, and these latest hikes will only amplify that trend. Data from TransImpact highlights just how much surcharges have outpaced actual fuel price increases:
- UPS’ Domestic Ground fuel surcharge has risen 24.3% year-to-date (as of November 2025), even though the underlying ground fuel cost increased only 8.62%.
- For domestic air services, UPS’ fuel surcharge jumped 23.5% while the basis air fuel cost rose a more modest 2.95%.
For FedEx, the surcharge increases are already paying off financially. During the company’s Q1 earnings call in September, EVP and Chief Customer Officer Brie Carere noted that higher fuel surcharge indexes have boosted per-package revenues in a “competitive but rational” pricing environment—hinting that carriers see these fees as a sustainable way to offset operational costs. For shippers, this means tighter margins unless proactive steps are taken to mitigate expenses.
What Shippers Can Do to Adapt
With these cost increases locked in, proactive planning is key to mitigating their impact—here are actionable strategies:
- Leverage Discounted Shipping Accounts: At GoodShip56, we specialize in providing exclusive discount accounts for UPS, FedEx, and other top carriers. Our partnerships allow us to secure preferential rates that often offset fuel surcharge hikes, helping you maintain predictable shipping costs even as carrier fees rise. Whether you’re a small business or a high-volume shipper, our tailored discount solutions can deliver significant savings on domestic, ground, and air shipments.
- Review Your Shipping Contracts: Pair your discount account with a contract review—work with our team or your logistics provider to renegotiate terms that account for surcharge trends, ensuring you’re not overpaying for core services.
- Optimize Packaging & Routes: Reducing package weight, using efficient packaging, and optimizing delivery routes can lower your total cost per shipment, complementing the savings from discount accounts.
- Diversify Shipping Partners: With GoodShip56’s access to multiple carriers, we can help you explore alternative or regional shipping options that may offer better value for specific routes or package types, reducing reliance on a single carrier’s rate structure.
- Monitor Fuel Trends: Since surcharges are tied to weekly fuel averages, our team stays updated on diesel and jet fuel markets to help you anticipate fluctuations and adjust shipping schedules for maximum cost efficiency.
GoodShip56: Your Partner in Cost-Effective Shipping
Don’t let fuel surcharge hikes eat into your profits. Our exclusive discount accounts for UPS, FedEx, and leading carriers are designed to shield your business from excessive cost increases—with savings that scale with your shipping volume. Whether you’re a small D2C brand or a large enterprise, we tailor solutions to your unique needs.
Get Your Discounted Shipping Account TodayFinal Thoughts
As we head into 2026, these fuel surcharge hikes from UPS and FedEx underscore the importance of staying agile in your logistics strategy. While carriers frame these adjustments as necessary to keep up with fuel costs, the disconnect between surcharge growth and actual fuel price increases means shippers need to be proactive about managing expenses.
GoodShip56 is here to help you navigate these changes: our discount accounts for UPS, FedEx, and other leading carriers are designed to shield your business from excessive cost hikes, while our logistics expertise can help you optimize every aspect of your shipping process. Whether you’re shipping direct-to-consumer, managing bulk orders, or scaling your operations, we’re committed to keeping your shipping costs competitive.
Stay tuned to GoodShip56 for ongoing updates on carrier pricing changes, logistics tips, and exclusive discount opportunities. Have questions about how to secure a discounted UPS or FedEx account, or want personalized insights on mitigating fuel surcharge impacts? Drop a comment below or reach out to our team today!
Disclaimer: Fuel surcharge rates are subject to change by carriers. GoodShip56’s discount accounts are subject to eligibility and partnership terms. Contact our team for detailed pricing and savings estimates tailored to your business.
Source: Supply Chain Dive – UPS, FedEx fuel surcharge table increases for ground (2025)
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Dec 03 2025
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