Parcel fuel surcharges explained
How parcel carriers turn weekly diesel and jet fuel prices into a percentage, and why the base it applies to matters as much as the rate.
Benchmarks this week: EIA U.S. diesel $6.127; Gulf Coast jet fuel spot $4.090 (week ending Nov 6, 2026).
Parcel carriers do not use a per-mile formula. Each publishes a table that maps a weekly fuel price to a percentage, and the percentage is applied to the transportation charge and to many surcharges on each package.
Two indexes
- Ground services are usually indexed to EIA’s U.S. on-highway diesel price.
- Air services are usually indexed to the U.S. Gulf Coast jet fuel spot price.
Carriers typically apply the price from a week or two earlier, so the surcharge trails the market.
Why the percentage keeps creeping up
When carriers revise their tables, the same diesel price can map to a higher percentage than before. Because the percentage also applies to accessorials, a table change can raise costs on packages whose base rate did not change.
What shippers negotiate
Larger shippers negotiate a discount off the published percentage, a cap, or a fixed table, and limit which accessorials carry fuel. See how shippers negotiate fuel surcharges.
Weekly parcel surcharge rates are tracked on our sister site ParcelFuelSurcharge.com, and what fuel adds per $100 shipped on ParcelFuelOptimizer.com.