UPS updated its U.S. Ground and Ground Saver fuel surcharge table effective August 10, without posting an announcement on its Rate Updates page. The change may not be visible on your current invoices, but its financial impact could emerge as diesel prices decline – keeping fuel surcharges higher than they would have been under the previous table.

Here is what changed, why it matters, and what we recommend.

What Changed in the UPS Fuel Surcharge Tables?

UPS calculates its weekly ground fuel surcharge using the EIA National U.S. Average On-Highway Diesel Fuel Price. Each diesel-price range corresponds to a specific surcharge.

Above a set threshold, the UPS surcharge changes by 0.25 percentage points for every $0.09 movement in diesel. Below that threshold, it takes a much larger $0.27 movement to produce the same change.

UPS has now raised the threshold to $4.99, just below the current diesel index of $5.26. That threshold was $3.55 in March and $4.45 in April. As diesel prices fall below $4.99, the table shifts to wider price bands – meaning diesel must decline farther before the fuel surcharge drops by another 0.25 percentage points.

Why Does the UPS Fuel Surcharge Update Matter for Shippers?

The practical effect is that fuel surcharges can rise quickly when diesel prices increase but decline more slowly when prices fall.

Consider the recently published index history:

  • In early March, the diesel index was $3.90, and the ground fuel surcharge was 22.75%. 
  • Following the Hormuz disruption, the index increased to $5.26, pushing the surcharge to 26.75%. 
  • Under the new table, even if diesel makes the full round trip back to $3.90, the surcharge would be 24.75%. 

The fuel price returns.

Two full percentage points of surcharge do not.

What Should Shippers Do Going Forward?

  1. Update your cost models. If you are forecasting 2027 shipping costs or evaluating carrier bids, model fuel using the new table across a range of diesel-index scenarios, not simply today’s surcharge.
  2. Address Fuel in your next UPS Negotiation. Ask whether the applicable fuel surcharge table can be fixed or otherwise addressed in your agreement. Fuel is a pricing component UPS can revise outside the normal annual rate-change cycle, and this year’s changes demonstrate the potential exposure.
  3. Quantify the Impact on your Network. Track the UPS fuel surcharge table changes and model the financial exposure against your specific Ground and Ground Saver spend. 

Reveel is Here to Help

The Reveel team will continue monitoring UPS fuel surcharge changes and their potential impact on shippers.

If this update could materially affect your 2027 budget, carrier evaluation, or upcoming UPS negotiation, contact our team for assistance. We can help determine whether a more targeted analysis of your ground shipping spend is warranted.