Major carriers are implementing new fuel surcharges, pushing more e-commerce brands to get creative with their shipping options. Effective last week, UPS now has surge emergency fees for goods coming from India, China and Hong Kong to the United States. There’s also a $0.32-per-pound fee for goods shipped internationally from the United States and a $1.50-per-pound fee for those going to Israel or the United Arab Emirates. The fees are in effect until further notice. In late April, the U.S. Postal Service implemented a temporary 8% fuel surcharge that will stay in place until at least January 2027.
Josh Steinitz, chief strategy officer at shipping and logistics company Auctane, said fuel surcharges are a way carriers can adjust for their own higher costs of doing business without affecting base rates. It’s particularly common at USPS, where there are legal regulations on what kinds of price hikes can be made.
To help mitigate costs, Steinitz said e-commerce companies are shopping around more before selecting a carrier. They’re taking into account not only rates but also delivery speed, as well as the bulk requirements that may be necessary for larger-volume orders.
“This has really made logistics a strategic choice and point of differentiation, as opposed to a commoditized function you plug in at checkout,” he said.
