UPS, Amazon fuel surcharges help blunt higher costs
Supply Chain Dive reported on 4 August 2026 that parcel carriers' fuel surcharges are moving with fuel costs, lifting surcharge revenue alongside the expense. UPS said its fuel costs rose 60.4% in the second quarter with a minimal effect on profit, because the surcharge lifted revenue as well. Amazon has applied a 3.5% fuel and logistics surcharge to Fulfillment by Amazon since April. Across ground parcel shipments the net fuel surcharge per package rose 40% year over year in the second quarter, according to the TD Cowen/AFS Freight Index. FedEx said the surcharges did not materially increase operating income, because expenses rose with them.
- 40% Ground Parcel Surcharge Rise, YoY
- 60.4% UPS Fuel Cost Rise, Q2
- 3.5% Amazon FBA Fuel Surcharge
A surcharge is a transfer rather than a saving: the cost does not leave the chain, it changes hands, and it arrives without a renegotiation. Buyers who model landed cost per order rather than rate per shipment will see it land; those who do not will meet it at the quarter end. The one lever the reporting identifies is negotiation, and it notes there is more room on fuel than usual because fuel is now a larger share of transport spend.