



Shipping Update — Effective June 9, 2025
Originally published in Logistics Strategies Substack
Shipping costs are shifting again — quietly but significantly.
As of today, both FedEx and UPS have updated their fuel surcharge tables, affecting nearly every shipment across Ground, Air, Freight, and International services. While these aren’t headline-grabbing hikes, they’re the kind of incremental increases that can quietly eat into your margins.
Here’s what’s changing, why it matters, and what you can do to stay ahead:
FedEx
As of today, FedEx is rolling out its latest fuel surcharge tables across all services. Here’s a quick breakdown:
- Ground / Home Delivery / International Ground
→ Diesel surcharge bands now range from 19.50% to 21.25%, based on weekly on-highway diesel prices. - Domestic Package (Jet Fuel)
→ Surcharges from 18.50% to 20.25%, tied to the jet fuel index. - Express Freight
→ Per-pound rates from $0.492 to $0.520, depending on jet fuel price. - International Export/Import
→ Surcharges adjusted to 22.25%–28.00%, based on international jet fuel pricing. - FedEx Freight (LTL & TL)
→ Fuel surcharge climbs to 31.6%, up from 29.6%, driven by the June 2 EIA diesel index.
Service | Trigger Fuel Price | Surcharge Range |
FedEx Domestic Package | Jet $1.64–2.36 | 18.50% – 20.25% |
FedEx Express Freight | Jet $1.64–2.36 | $0.492 – $0.520 per lb |
FedEx Ground / Home Delivery | Diesel $3.01–4.09 | 19.50% – 21.25% |
FedEx International (Export/Import) | Jet $1.71–2.23 | 22.25% – 28.00% |
FedEx Freight (LTL / TL) | Diesel index 338–363 | 31.25% – 32.10% (currently 31.6%) |
Bottom line: Expect a ~200 basis point (2%) increase across many FedEx fuel surcharge tiers. These bands are carefully adjusted to lock in margin as fuel prices dip.
UPS
UPS is also updating its weekly fuel surcharge tables today. These apply to Ground, Domestic Air, and Ground Saver shipments.
- UPS surcharges now range from 19.0% to 19.5%, reflecting a slight increase over last week’s 18.0% – 18.75%.
These adjustments are tied directly to weekly fuel index data provided by the Energy Information Administration (EIA) and reflect their typical adjustment cadence.
Snapshot of UPS Fuel Surcharge – June 9, 2025
Service | Fuel Surcharge Rate |
UPS Ground / Domestic Air | 19.50% |
UPS International Air | 29.25% |
Why It Matters Today
- These are invoice-visible line items that add directly to your shipping costs — especially for heavy, long-distance, or frequent shipments.
- With both major carriers increasing rates simultaneously, it may shift which is more cost-effective for your use case.
- The changes also highlight how volatile and responsive shipping costs are to macroeconomic indicators like fuel pricing.
What You Should Do Right Now
Update Your Shipping Systems
Make sure your TMS, ERP, and carrier integrations are pulling the updated fuel surcharge tables effective June 9. Even a short delay in syncing this data can create costly mismatches on your invoices.
Revise Quotes and Proposals
Adjust customer-facing pricing and internal cost expectations to reflect the real, current cost of shipping—especially for frequent or high-weight zones.
Reevaluate Carrier Choice
Now is the time to run cost comparisons between FedEx, UPS, and alternative modes. Even minor adjustments to your routing strategy could unlock meaningful savings.
Communicate Internally and Externally
Let your finance, ops, and sales teams — as well as customers — know that these fuel-based increases are routine, but cumulative. Transparency builds trust.
Need support?
If you’re not sure how to analyze the impact or adapt quickly, this is where strategic shipping and logistics advisors can make all the difference. From auditing your contracts to building a smarter carrier mix, expert support helps ensure you’re not leaving money on the table.
These aren’t sweeping rate hikes. But they’re fuel-driven bumps passed directly to you — and when you’re shipping hundreds or thousands of packages, every basis point counts.



