--- title: "Fuel Is Expensive! 7 Ways to Offset Fuel Surcharges for Parcel and LTL Shipping " url: "https://www.shipstation.com/en-gb/blog/fuel-is-expensive-7-ways-to-offset-fuel-surcharges-for-shipping/" type: "post" modified: "2026-09-22T10:49:32-05:00" --- Diesel prices are up, and shippers are feeling the impact of fuel surcharges. The average U.S. on-highway diesel price reached $6.285 per gallon for the week of September 14, 2026, according to the [U.S. Energy Information Administration (EIA)](https://www.eia.gov/petroleum/gasdiesel/). That’s up 31.8 cents from the previous week and $2.546 from a year earlier. In California, the average climbed above $8 per gallon. And the pressure isn’t limited to diesel. Jet fuel prices have also risen, while marine fuel markets have faced elevated pricing in recent weeks. Together, these higher fuel costs are creating additional cost pressure across the shipping and logistics industry. For domestic shippers, rising diesel prices can have a direct impact on what businesses pay for transportation. Many carriers use EIA diesel-price data when determining their fuel surcharges, which means higher diesel prices can contribute to higher parcel and LTL freight shipping costs. You can’t control diesel prices. And in many cases, you have limited control over the fuel surcharges carriers assess. But you can take steps to limit the impact on your shipping costs. In this guide, we focus on domestic [parcel and LTL freight shipping](https://www.shipstation.com/blog/ltl-freight-and-parcel-advantages-of-leveraging-both-shipping-modes-with-shipstation/), including how fuel surcharges work and the steps you can take to reduce unnecessary shipping fees and make smarter transportation decisions. **What is a fuel surcharge?** ------------------------------ A fuel surcharge is an additional fee carriers use to account for changing fuel costs. For ground transportation, carriers commonly use diesel prices as a benchmark, including data reported by the EIA. But there’s an important distinction: EIA reports fuel prices. It doesn’t set fuel surcharges. EIA publishes weekly average retail on-highway diesel price estimates that many shippers and trucking companies use in their fuel-pricing formulas. Each carrier, however, establishes its own fuel surcharge methodology. That means two carriers using the same EIA data can still calculate fuel surcharges differently. And fuel surcharges are only one potential addition to your base transportation rate. Other charges, [including accessorial charges](https://www.shipstation.com/blog/ltl-freight-accessorial-fees-what-are-they-and-how-do-you-avoid-them/), can also affect your total shipping cost. ### **Recent diesel prices at a glance** EIA region Diesel price per gallon, Sept. 14, 2026 Change from previous week Change from year ago U.S. $6.285 +$0.318 +$2.546 East Coast $6.158 +$0.414 +$2.410 Midwest $6.250 +$0.304 +$2.540 Gulf Coast $6.027 +$0.273 +$2.638 Rocky Mountain $6.066 +$0.261 +$2.344 West Coast $7.250 +$0.263 +$2.727 California $8.039 +$0.275 +$3.068 *Source: U.S. Energy Information Administration, U.S. On-Highway Diesel Fuel Prices. Prices include all taxes.* **How do freight and parcel carriers calculate fuel surcharges?** ------------------------------------------------------------------ There’s no universal formula for calculating fuel surcharges across every carrier and service. Carriers establish their own formulas and schedules, while contract terms and negotiated pricing can also affect what an individual shipper pays. That’s why knowing the current price of fuel isn’t enough to determine your actual surcharge. ### **How freight fuel surcharges work** For freight shipping, carriers commonly use [EIA diesel-price data](https://www.eia.gov/energyexplained/diesel-fuel/diesel-fuel-surcharges.php) as a benchmark. What varies is how each carrier uses that benchmark to determine its fuel surcharge. Carriers may apply different formulas, schedules, and pricing structures, so the same diesel price doesn’t necessarily result in the same fuel surcharge. Check your carrier’s methodology and your agreement to understand how the charge applies to your shipment. ### **How parcel fuel surcharges work** Parcel carriers also use published fuel-price benchmarks to determine their surcharges. Ground services commonly use diesel-price data, while air services may use jet-fuel data. Carriers then apply their own tables and methodologies to translate the applicable benchmark into a surcharge percentage. For example, [UPS adjusts its U.S. fuel surcharges](https://www.ups.com/us/en/support/shipping-support/shipping-costs-rates/fuel-surcharges) weekly. Its U.S. Ground surcharge is based on EIA’s National U.S. Average On-Highway Diesel Fuel Price, while its Domestic Air surcharge is based on EIA’s U.S. Gulf Coast jet-fuel price. Important note: A fuel surcharge isn’t always calculated on the base transportation rate alone. Depending on the carrier and service, [certain accessorial charges](https://www.shipstation.com/blog/ltl-freight-accessorial-fees-what-are-they-and-how-do-you-avoid-them/), such as delivery area or additional handling surcharges, may also be included in the amount subject to the fuel surcharge. Carriers determine which charges are subject to the fuel surcharge as part of their pricing methodology, so check your carrier’s terms when estimating your total shipping cost. ### **What could a parcel fuel surcharge look like?** Here’s a simplified example. Suppose a parcel shipment has a $20 base transportation charge plus a $5 eligible accessorial charge. If the applicable fuel surcharge is 18% and both charges are subject to it, the calculation would look like this: **($20 + $5) × 18% = $4.50 fuel surcharge** Example charge Amount Base transportation charge $20 Eligible accessorial charge $5 Amount subject to fuel surcharge $25 Illustrative fuel surcharge 18% Fuel surcharge $4.50 *This is only an illustration, not a current carrier rate. Actual fuel surcharges depend on the carrier, service, applicable fuel-price benchmark, charges subject to the surcharge, and your agreement.* **7 ways to offset the impact of shipping fuel surcharges** ------------------------------------------------------------ Higher fuel surcharges can increase your shipping costs, but there are other areas of your transportation spend you can influence. Whether you’re [shipping parcel or LTL freight](https://www.shipstation.com/blog/how-to-ship-ltl-through-shipstation/), finding savings in those areas can help offset some of the impact. ### **1. Compare carrier rates** Don’t assume the carrier or service you used last time is automatically the best option for your next shipment. Rates can vary based on the carrier, destination, shipment characteristics, service level, and other factors. Comparing available options lets you evaluate the total shipping cost before you book. For LTL freight shipments, that could mean comparing carriers serving the same lane. For parcel shipments, it could mean comparing carriers and service levels based on the package and required delivery timeframe. With the [right shipping technology](https://www.shipstation.com/fulfillment/), those comparisons can become part of your regular workflow instead of a time-consuming manual process. ### **2. Consolidate shipments when it makes sense** When timing, shipment characteristics, and customer requirements allow, consolidation can help reduce the number of shipments you need to make. [For LTL freight](https://www.shipstation.com/fulfillment/shipping/ltl-freight/), look for opportunities to combine freight moving to the same destination on a similar schedule, provided the products can be safely packaged and shipped together. For example, instead of sending two separate pallets to the same customer on consecutive days, you may be able to consolidate them into a single LTL shipment. Parcel shippers may also be able to combine multiple products or orders going to the same customer into fewer packages. For example, if several orders are placed within a short period and haven’t shipped yet, combining them may eliminate an additional package and its associated transportation charges. Just make sure the combined package still meets carrier size and weight requirements and provides adequate protection during transit. ### **3. Reduce avoidable accessorial charges and carrier fees** Higher fuel costs make unnecessary fees even more painful. For LTL freight shipments, [carriers can assess accessorial fees](https://www.shipstation.com/blog/ltl-freight-accessorial-fees-what-are-they-and-how-do-you-avoid-them/) when a shipment requires services beyond standard pickup and delivery. Depending on the carrier and shipment, these may include: - Liftgate service - Residential pickup or delivery - Limited-access pickup or delivery - Delivery appointments or notifications - Inside pickup or delivery - Detention or waiting time Parcel shipments can also incur additional carrier fees based on package characteristics, delivery location, service, and other factors. Some charges are necessary, but others may be avoidable with better planning. Understanding carrier requirements before you ship can help you prevent unnecessary fees, reduce your total shipping cost, and offset some of the added expense created by higher fuel surcharges. ### **4. Provide accurate weights, dimensions, and shipment information** Accurate shipment information helps you get more reliable rates upfront and reduce the risk of billing adjustments later. Whether you’re shipping parcel or [LTL freight](https://www.shipstation.com/blog/how-to-ship-ltl-through-shipstation/), provide accurate weight, dimensions, and other required shipment details. For LTL, that can include [freight classification when applicable](https://www.shipstation.com/blog/ltl-freight-classification/), along with pickup and delivery information. Carriers may verify shipment characteristics, and discrepancies can result in billing adjustments. Accurate information also makes rate shopping more useful by helping you compare prices based on the shipment you’re actually sending. ### **5. Improve packaging efficiency** Oversized boxes and [inefficient pallet configurations](https://www.shipstation.com/blog/how-to-protect-your-ltl-cargo-with-shipping-pallets-and-freight-packaging/) can increase shipping costs. Right-size parcel packaging when possible and configure LTL freight to avoid unnecessary space while keeping products properly protected and secured. The goal isn’t to make every box or pallet as small as possible. It’s to package your shipment safely without paying to transport space you don’t need. ### **6. Match the service level to the shipment** Faster service often comes at a higher price, but not every shipment needs it. For parcel shipping, determine whether a lower-cost ground service can still meet the required delivery timeframe before paying for expedited transportation. Take the same approach with LTL freight. Review the shipment’s delivery requirements before adding expedited or other premium services that may not be necessary. The bottom line: Match the service to the shipment so you’re not paying extra for speed or capabilities you don’t need. ### **7. Review your total shipping cost, not just the fuel surcharge** A fuel surcharge is only one part of what you pay to ship. Looking at the complete cost helps you avoid choosing a carrier or service based on one line item while overlooking expenses elsewhere. Cost component Your ability to influence it Where to look Base transportation rate Often significant Compare available carriers and services Fuel surcharge Often limited Review carrier methodology and negotiated terms Accessorial charges Depends on shipment needs Identify requirements before booking Parcel billable weight Often significant Use accurate dimensions and right-size packaging LTL freight billing adjustments Often significant Provide accurate shipment information Expedited service Often significant Match service to delivery requirements Packaging Often significant Avoid unnecessary size while protecting products One carrier could have a lower fuel surcharge but a higher overall rate. Another could have a higher surcharge but a lower total price for the shipment. The number that ultimately matters is the total cost of moving your shipment at the service level you need. **How ShipStation helps control shipping costs when fuel prices rise** ----------------------------------------------------------------------- Understanding where shipping costs come from is only part of the equation. The next step is having the visibility and flexibility to make better decisions before you ship. That’s where [ShipStation](https://www.shipstation.com/fulfillment/) can help. ### **Compare rates before you ship** ShipStation provides real-time rate comparisons across 200+ parcel carriers and 50+ LTL freight carriers. For parcel, Rate Shopper evaluates available services using shipment information such as package weight, dimensions, destination ZIP code, and delivery speed. For LTL, shippers can compare available carrier rates side by side. When fuel surcharges are elevated, that visibility can help you evaluate the total rate available for the shipment rather than focusing on the fuel surcharge alone. ### **Automate parcel rate shopping** ShipStation’s Rate Shopper can automatically evaluate parcel services based on goals such as cheapest, fastest, or best value. Businesses can also choose which parcel carriers and services are included, then apply those preferences to rate comparisons. That makes rate shopping part of the shipping workflow instead of a separate manual process. ### **Manage parcel and LTL freight in one platform** Businesses that ship both [packages and pallets](https://www.shipstation.com/blog/big-news-freight-is-now-native-to-shipstation/) can manage those workflows in the same platform. ShipStation lets shippers compare rates, book, and track LTL freight in the same platform they use for parcel shipping. That means more shipping decisions can happen in one place, whether you’re moving individual packages or palletized freight. ### **Access discounted carrier rates** ShipStation provides discounted carrier pricing and lets businesses bring their own carrier accounts into the platform. For LTL, ShipStation currently provides access to discounted pricing across 50+ national carriers. Availability and pricing depend on the shipment and account. **Fuel surcharge FAQs** ------------------------ ##### What is a fuel surcharge in shipping? A fuel surcharge is an additional carrier charge used to account for fuel costs. Transportation companies determine their own methodologies, often using published fuel-price data as an input. ##### How often do freight fuel surcharges change? It depends on the carrier and its methodology. EIA publishes U.S. on-highway diesel price estimates weekly, and many shippers and trucking companies use EIA data in fuel-pricing formulas. ##### Does the U.S. Energy Information Administration set fuel surcharges? No. EIA publishes retail diesel-price data but doesn’t calculate, assess, regulate, or prescribe a method for carrier fuel surcharges. Carriers use their own methodology. ##### Can businesses negotiate fuel surcharges? Potentially. Fuel surcharge terms or other pricing terms may be negotiable, but the opportunities and terms vary by carrier and agreement. ##### Do fuel surcharges apply to both parcel and freight shipping? Yes. Fuel surcharges are used in parcel and freight transportation, but the benchmark, calculation method, applicable charges, and surcharge amount can differ by carrier and service. **Take control of the shipping costs you can influence** --------------------------------------------------------- Higher fuel prices can put additional pressure on transportation budgets. Understanding how fuel surcharges affect your costs is a start. The bigger opportunity is looking across your shipping operation for costs you can influence. ShipStation gives you the tools to put those cost-saving strategies into action. Compare rates across carriers, choose the right service for each shipment, and [manage parcel and LTL freight from one platform](https://www.shipstation.com/blog/ltl-freight-and-parcel-advantages-of-leveraging-both-shipping-modes-with-shipstation/) so you can make more informed shipping decisions before costs add up. You can’t control the price of fuel. But you can take greater control of what you spend to ship. See how ShipStation can help you simplify shipping and find more opportunities to save. Want to learn more? Log in or [sign up for a free trial](https://www.shipstation.com/start-a-free-trial/) today.