Carriers Impose Record Fuel Surcharges for Holidays

Major delivery firms are raising fees as diesel prices climb and calculation formulas evolve.

Updated on Oct. 26, 2026 in Inflation

Isometric editorial illustration of an industrial shipping container on a concrete base, representing record holiday delivery surcharges. — Major delivery carriers have raised fuel surcharges to record levels for the holiday season as diesel costs and calculation formulas increase. AI Illustration. Upload story photo >

Live Poll

Do you feel that current shipping surcharges on e-commerce deliveries are becoming unfairly high?

UPS, FedEx, and other major carriers have implemented record-high fuel surcharges for parcel deliveries across the United States. These adjustments follow a surge in diesel costs and the adoption of modified surcharge calculation formulas.

Why it matters

The rising surcharges significantly increase delivery expenses for retailers, which may ultimately impact the cost of goods for consumers. Carriers attribute these pricing shifts to the need to cover infrastructure investments and manage increased volume during the busy fourth quarter.

The US average on-highway diesel price reached $6.28 per gallon, representing a 65% increase since February 28. UPS and OnTrac have reached a 29.5% fuel surcharge, while FedEx applies a 29% rate at current diesel price levels.

The players

UPS

This global shipping and logistics company is one of the primary carriers adjusting its fuel surcharge tables for the holiday season.

FedEx

As a major express transportation company, it has aligned its fuel surcharge rates with current diesel price volatility.

USPS

The United States Postal Service implemented an 8% fuel surcharge on most packages earlier this year to address rising operational costs.

Amazon

This e-commerce giant added a 3.5% fuel and logistics surcharge to its seller fulfillment fees during the spring.

OnTrac

This regional logistics provider has instituted a 29.5% fuel surcharge for the week ending October 25.

The details

Carriers are utilizing surcharge tables indexed to Energy Information Administration averages, though less than 30% of total surcharge costs are directly attributed to diesel price fluctuations. Consequently, ground delivery prices are expected to rise 5.8%, with express parcels forecast to increase 13.8% compared to last year.

Q1 2021: Diesel price was $2.91 per gallon with a 7.75% fuel surcharge.
February 28: US and Israel attacked Iran, coinciding with a diesel price rally.
April 2026: The USPS and Amazon imposed new fuel and logistics surcharges.
October 19: US average on-highway diesel price hit $6.28 per gallon.
Week ending October 25: OnTrac fuel surcharge reached 29.5%.

Macro View

These surcharges follow the trajectory set by the Energy Information Administration diesel price indexes, which anchor industry pricing. The current delivery environment mirrors previous inflationary periods where logistics firms aggressively passed rising fuel costs to customers.

Shoppers may face higher costs for online purchases as retailers pass along these record delivery fees. Families should budget for potentially higher shipping charges when completing holiday orders.

The takeaway

Consumers can mitigate these costs by consolidating orders to reduce the number of individual shipments during the holiday season. Planning purchases well in advance may also allow shoppers to select slower, less expensive delivery options.