FedEx and UPS have installed fuel surcharge rate increases and levied new shipping fees this month, adjustments that will impact a wide range of customers’ international shipments travelling to and from the United States.
UPS has applied a 32 cents per pound surge fee for volume into the US from most origin countries, effective May 3, along with an 11 cents per pound surge fee for shipments from certain Asian countries. FedEx followed with a 20 cents per pound export demand surcharge for US shipments to Canada, Mexico and several European destinations, and a 25 cents per pound import demand surcharge for shipments from China, Hong Kong and Macau, both effective May 7.
Both carriers also increased their fuel surcharge rate calculations by 2 percentage points for international air imports and exports effective May 11, with FedEx applying a 2.5 percentage point increase specifically for international imports. DHL eCommerce is additionally set to raise domestic fuel surcharge rates by 14 cents per pound from May 30.
The wave of surcharge hikes adds to ongoing cost pressures for parcel shippers as logistics giants pass on increased expenses, with carrier surcharges tied to fuel prices having risen sharply as the Iran war and Strait of Hormuz disruptions continue to squeeze the global oil supply. Shippers are advised to update cost models and explore negotiated discounts or alternative carrier options to manage the growing financial impact.
