Fuel surcharges are climbing across every major carrier. Here’s what’s driving the increases, how each carrier calculates them, and what you should expect on your next invoice.
Why Are Shipping Costs Going Up?
Fuel is one of the highest operating costs in the shipping industry, and when prices rise, carriers pass the cost along to shippers through a fuel surcharge. This is a percentage added to your base shipping rate, and it fluctuates — often weekly — based on published fuel price indexes.
Important for netParcel customers: The rate you see when quoting a shipment through netParcel reflects fuel surcharge levels at the time of your quote. If your shipment is in transit when a carrier’s fuel surcharge changes, the carrier may invoice at the updated rate — meaning your final billed amount could differ from your original quote. This is a carrier-level adjustment.
This is not unique to netParcel — it applies across all shipping platforms and direct carrier accounts. Understanding how each carrier calculates its surcharge helps you anticipate costs and avoid surprises.
How Fuel Surcharges Work
Every carrier follows the same basic model: they publish a table that links a fuel price index to a surcharge percentage. As the index price moves up or down week to week, the surcharge percentage adjusts accordingly. The surcharge is then applied as a percentage of your base transportation charge — and in many cases, it also applies to certain accessorial fees on top of the base rate.
Most Canadian carriers index their domestic surcharges to the average weekly diesel price in Canada, as reported by Natural Resources Canada (NRC) or Kalibrate Technologies Ltd. U.S.-based surcharges typically track the U.S. Energy Information Administration (EIA) diesel or jet fuel index.
There is usually a one- to two-week lag between the index price and the effective surcharge date, which is why the rate you’re billed can differ from what you saw at the time of booking.
What This Means for In-Transit Shipments
One of the more common sources of confusion for shippers is the difference between what they were quoted and what they are ultimately invoiced.
When you generate a shipping label through netParcel, the rate shown reflects the carrier’s fuel surcharge at that moment. However, carriers bill based on the surcharge rate that is in effect at the time your shipment is processed and invoiced through their network, not necessarily the rate at the time of booking.
If a carrier updates its fuel surcharge between the time you print your label and the time the shipment is scanned into the carrier’s system, the carrier may apply the updated surcharge to your invoice. This is standard practice across the industry and applies to all carriers in our network.
What to watch for: If you see a line item labelled “Fuel” or similar on your invoice at a higher rate than you were quoted, it may reflect the carrier reconciling the surcharge applied at billing against the rate at the time of label creation. This is a carrier-generated charge billed directly by the carrier.
Current Fuel Surcharge Rates by Carrier
The table below summarizes how each major carrier structures its fuel surcharges, along with approximate current rates as of early 2026. Because rates change weekly or monthly, always check the carrier’s official page for the most current figure.
Canadian Carriers
| Carrier | Service Type | Index Used | Update Frequency | Approx. Rate (Early 2026) |
|---|---|---|---|---|
| UPS Canada | Domestic Ground (within Canada) | Avg. retail diesel price — Natural Resources Canada | Weekly (effective Monday) | ~19–22% |
| UPS Canada | International Express (Canada–USA/Global) | U.S. Gulf Coast (USGC) jet fuel — EIA | Weekly (effective Monday) | Variable by lane |
| FedEx Canada | Express & Ground (Intra-Canada) | Avg. Canadian diesel retail price — NRC | Weekly (effective Monday) | ~19–22% |
| FedEx Canada | International Ground (Canada–USA) | U.S. On-Highway Diesel — EIA | Weekly | Variable by lane |
| Canada Post | Domestic (Priority, Xpresspost, Expedited, Regular) | Avg. weekly Canadian diesel — Kalibrate Technologies | Weekly (effective Monday) | ~39% |
| Canada Post | USA & International Parcels/Packets | Avg. weekly Canadian diesel — Kalibrate Technologies | Weekly (effective Monday) | ~20-23% |
| Purolator | Courier (all domestic) | 4-week avg. gasoline price — Natural Resources Canada | Monthly (first Monday) | ~23.5–25.5% |
| Purolator | PuroPost & PuroPost Plus | 4-week avg. diesel — Kent Group Ltd. | Monthly | ~21.5% |
| Canpar | All domestic ground | Avg. weekly Canadian diesel — Kalibrate Technologies | Weekly | See canpar.com |
| Loomis Express | Domestic Canadian | Avg. weekly Canadian diesel — Kalibrate Technologies | Bi-weekly | ~25.8–26.5% |
| Loomis Express | International | USGC weekly avg. — U.S. EIA | Bi-weekly | Variable |
* Rates are approximate and change frequently. Confirm current rates directly with each carrier. Volume discount program customers may have different contracted surcharge rates.
U.S. Carriers
| Carrier | Service Type | Index Used | Update Frequency | Approx. Rate (Early 2026) |
|---|---|---|---|---|
| UPS USA | U.S. Ground Domestic (UPS Ground, Ground Saver) | National U.S. avg. on-highway diesel — EIA | Weekly (effective Monday) | ~20–23.5% |
| UPS USA | U.S. Domestic Air (Next Day Air, 2nd Day Air, 3 Day Select) | USGC kerosene-type jet fuel — EIA | Weekly (effective Monday) | ~20.5–23.5% |
| UPS USA | International Ground Export/Import (to/from Canada & Mexico) | National U.S. avg. on-highway diesel — EIA | Weekly; table updated March 2, 2026 | ~21.75% |
| FedEx USA | FedEx Ground, Home Delivery, International Ground | U.S. on-highway avg. diesel — U.S. Dept. of Energy | Weekly (effective Monday) | ~19–22% |
| FedEx USA | Express (domestic & international air) | USGC kerosene-type jet fuel — EIA | Weekly (effective Monday) | ~19–22% |
| USPS | All services (Ground Advantage, Priority Mail, Priority Mail Express) | N/A — no fuel surcharge | N/A | No fuel surcharge |
* USPS does not apply a separate fuel surcharge. Instead, fuel costs are factored into base rate increases, which were implemented in January 2026 (approximately 5.1–7.8% depending on service).
📌 Where to find official current rates
UPS Canada: ups.com/ca/en/support/shipping-support/shipping-costs-rates/fuel-surcharges
UPS USA: ups.com/us/en/support/shipping-support/shipping-costs-rates/fuel-surcharges
FedEx Canada: fedex.com/en-ca/shipping/fuel-surcharges.html
FedEx USA: fedex.com/en-us/shipping/fuel-surcharge.html
Canada Post: https://www.canadapost-postescanada.ca/cpc/en/support/kb/company-policies/rates-taxes-surcharges
Purolator: purolator.com/en/shipping/fuel-surcharges
Canpar: canpar.com/en/shipping/fuel_surcharge.htm
ICS: https://www.icscourier.ca/fuel-surcharge
Loomis Express: https://www.loomisexpress.com/loomship/Services/FuelSurcharges
Asendia: https://www.asendia.com/fuel-surcharge
Engage Our Team
If you have any questions or concerns with any of your invoices, please engage our team via email to support@netparcel.com or by phone at 1-855-891-4521 ex. 1.
Thank you,
netParcel Account Management
