UPS Fuel Surcharge – Effective June 23, 2025
UPS is adjusting its fuel surcharge rates once again, impacting Ground, Ground Saver, and Domestic Air services. Effective June 23, 2025, the surcharge for many parcel shippers will rise to 18.75%, depending on fuel index levels.
📊 Rate Comparison
- Ground / Ground Saver
- Pre–May 2025: ~17.75%
- May 26, 2025: ~19.00%
- June 23, 2025: 18.75%
- Domestic Air
- Pre–May 2025: ~17.75%
- May 26, 2025: ~19.00%
- June 23, 2025: ~18.75%
🔍 What This Means for Parcel Shippers
- Fuel surcharges now consume nearly 19% of your base rate, a substantial cost.
- These changes follow an earlier increase in May, compounding pricing pressure.
- Surcharges are updated weekly based on national fuel indices.
💡 Strategic Takeaways
- Review your shipping contracts, fuel index caps may help mitigate costs.
- Explore alternative carriers if fuel surcharges are eating into margins.
- Use a third-party negotiator to build leverage and realign your pricing terms.
At ebb Logistics, we track these changes weekly so you don’t have to, and we help shippers push back on unpredictable rate increases with data and strategy.
Source: UPS Domestic Fuel Surcharge
💡 What You Can Do
- Budget accordingly, fuel surcharges are now ~19% of base shipping rate per parcel.
- Negotiate contracts, cushion for surcharges can be negotiated in volume agreements.
- Track weekly indices, UPS updates these surcharges regularly, tied to diesel and jet fuel trends.
- Consider alternatives, compare with FedEx and USPS, especially for high-volume or residential shipping.
Here is the 2025 year-to-date graphic showing weekly fuel surcharge trends for the four major parcel service groups: UPS Ground, UPS Air, FedEx Ground, and FedEx Air.
We’re talking about real money here, not pennies. Don’t wait until these changes hit your invoice. Review your strategy now.
Need help breaking it down? Reach out, we’re here to help.
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