Across the landscape of always increasing charges from parcel carriers, typically we would think of the fuel surcharge as one of the most straightforward, simple pass-through fees. The planes, semi-trucks, and delivery vans needed to execute the delivery of packages all require fuel, so it makes sense. Furthermore, it is not a static price but moves directly with the posted cost of fuel. Once again, this seems straightforward. However, when we look further, we find the amount we pay for fuel, given a static national fuel cost, has increased dramatically.

As a Percent of an Increasing Target

We know the fuel surcharge is paid as a percentage of the transportation rate plus applicable accessorial charges. Additionally, the percentage paid for fuel will move up and down based on the posted Department of Energy Fuel Index. However, given a static cost of fuel, let’s use $3.60 - which is roughly the average across 2021, 2024, 2025, the ground fuel surcharge percentage has more than doubled (it’s actually increased by more than 2.5X) since 2021. Historic fuel surcharge tables are impossible to find on carrier websites, but if you have copies going back to 2021, you would see 10 separate increases to the fuel surcharge table.

Next, we review the base transportation charge. Fuel is a percentage of this charge so when it goes up, even without a fuel increase or fuel table change, the amount you pay for fuel does as well. Posted GRIs may say 5.9% but they hit zones/services/weights differently. Even with a four percent effective rate cap, compounded over five years, that is an almost 22% increase, and list rates will be closer to 37%.

Lastly, we have our applicable accessorial charges. These surcharges dodge posted GRIs and can have much higher increases. While savvy negotiators are able to find reductions and limit the impact, the increase in accessorial charges as a percentage of transportation is undeniable. We estimate these to have doubled over the past five years.

What Carrier Efficiencies?

Sure, fuel prices go up and down, and luckily 2024 and 2025 offered quite a respite from the averages we saw in 2022 and 2023. But where fuel economy is concerned, the ground network is consistently seeing gains in efficiency. Most Class 8 trucks that support the long hauls of packages have seen fuel ratings become much more efficient over the past decade. In many cases, fuel economy is even better in the city as engines idle off etc. Smaller delivery trucks that we see every day have also improved as carriers invest in hybrid options and alternative fuels.

Likewise, carriers are continually improving their networks. Routing software to reduce total miles is continually being enhanced. For large parcel carriers, fuel is the largest variable expense and therefore reducing total miles in the network is constantly tracked. While the gains in network efficiency are externally trumpeted as strategic for improving service/transit times, the reason they are so important to carriers - and receive investment funds - is to reduce their fuel expense.

The general takeaway is that with a combination of fuel efficiency, route and network optimization - if fuel is the same price as it was five years ago - these carriers are using less now, not more.

By the Numbers

If we take a mathematical approach, assume a $20M net transportation shipper in 2021.

Assumptions:

§Ground service level, not express

§Fuel consistent at $3.60 on the DOE

§2021 Fuel Surcharge 9%, standard 25% discount applied

§2026 Fuel Surcharge 24%, standard 25% discount applied

§Fuel applicable Accessorials 8% of spend in 2021

§Fuel applicable Accessorials 16% of spend in 2026

Landed fuel surcharge increase is 372% or just over 3.7X the original.

In Conclusion

The result of the combination of increased fuel tables and base transportation charges, coupled with a significant increase on fuel-applicable accessorial charges - even at the same national fuel price - has increased the cost of fuel over 3.5 times in just five years. And this is one case where we can’t claim inflation as the cause. We know that when the fuel price is higher, we pay for even more fuel. Additionally, I would argue given fuel economy gains and network optimizations that the amount of fuel to move a package through the network has actually decreased.

So, as a shipper, what can you do? Negotiate those fuel surcharges. To match fuel costs from 2021, given a base 25% discount, you would simply need to target an 80% fuel surcharge discount. That may be out of reach, but it is clear fuel has become a major profit center for carriers and that larger fuel surcharge discounts should be on the table.

Eric Grice is Director of Transportation Intelligence, Infios.

This article originally appeared in the September/October, 2026 issue of PARCEL.