The carriers increasing fuel surcharges is nothing new, but it is news— especially since UPS is increasing fuel surcharge calculations by 50 basis points. In addition to UPS's newest fuel surcharge hike, it's also adding several other fees that could affect your monthly payments.

Today, we're sharing UPS's new fees and how ShipRx can help you lower your shipping costs despite them.

How does UPS calculate fuel surcharges?

The fuel surcharge for packages sent using US Ground Domestic and UPS SurePost is based on the US Energy Information Administration's average on-highway diesel fuel price. The average US Gulf Coast jet fuel price is the basis for fuel surcharges for packages shipped by US Domestic Air.

Fuel surcharges run with a one-week lag time, meaning that fuel surcharges for the week of March 17 are based on the national average fuel prices from the week of March 10.

What are the new UPS fuel surcharges?

On Monday, March 10, UPS bumped up its fuel surcharges by 50 basis points.

Its most recent change before this was on December 23, 2024— the seventh update that year. According to the December rates, if the national US average for on-highway diesel fuel was between $3.64 and $3.73, the surcharge would be 18%. With this latest update, the surcharge will be 18.5%.

What other fee changes is UPS making?

UPS is introducing several changes to "modernize invoices and payment options for customers" over the coming weeks and months.

Effective March 16, 2025, UPS will add a $10 paper commercial invoice series surcharge to all invoices not provided using UPS Paperless® Invoice services.

Beginning March 31, 2025:

●       Print invoice fee: Each printed copy of a UPS invoice sent to shippers or other payors will incur a cost of $5.
●       Check and wire transfer fee: UPS will add a $25 fee to all payments made by check or wire transfer (not including ACH payments) on or after March 31, 2025.
●       Late payment fee: The fee for late payments will increase by 1.9%. The new 9.9% fee will be assessed on the total past-due invoice balance, including any past-due late fees.

Effective May 18, 2025:

●       The end of credit card surcharges: The current 2% surcharge will cease.
●       New payment processing fee: UPS will add a payment processing fee equal to 2% of all other invoice charges to each invoice.

How can I lower shipping costs amidst so many increases?

With surcharges and fees increasing, your invoices can become unpredictable— throwing a wrench in your shipping budget.

Did you know that not all businesses are subject to the same fees and surcharges? Contract negotiations can do more than just lower your base rate— they can also secure discounts on surcharges the carriers set. Contract negotiations are an essential way to keep your shipping costs low and ensure you're not paying above the industry average.

Contact ShipRx today for a free savings analysis and discover how to lower your shipping rates, even as these new surcharges and fees go into effect.