Reveel Report: The Changing Dynamics of Fuel Surcharge
Fuel surcharges have evolved from straightforward cost pass-throughs into strategic revenue tools for carriers like FedEx, UPS, and more. Surcharges are tied to weekly EIA fuel price data, but carriers can modify their pricing tables at will, and increasingly do just that, now adjusting them nearly every quarter rather than annually.
A striking example: a shipment in the $3.75–$3.82/gallon diesel range that carried a 15% surcharge in March 2024 now carries a 22% surcharge. That is a 46.7% cost increase over two years, far outpacing actual fuel price changes.
Carriers have also used geopolitical crises like the Iran conflict and Russia’s Ukraine invasion as cover to quietly restructure their tables in ways that lock in higher rates even after energy prices fall.
The real-world financial impact is significant. Since the Iran conflict began on February 28, 2026, ground shipping costs have risen 2.88% and air shipping costs 4.5% — costing a $20M shipper an estimated $576K and $900K annually.
Shippers should begin to treat fuel surcharges as just one part of a broader accessorial charge landscape that has grown 27% over five years. To stay ahead of these changes, shippers need to monitor surcharges continuously, integrate shipping costs into financial systems, and model exposure across multiple fuel price scenarios. Read the full report to learn more about these ever-evolving fuel surcharges.
