{"id":102228,"date":"2026-09-22T10:45:42","date_gmt":"2026-09-22T15:45:42","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=102228"},"modified":"2026-09-22T11:13:45","modified_gmt":"2026-09-22T16:13:45","slug":"fuel-is-expensive-7-ways-to-offset-fuel-surcharges-for-shipping","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/en-gb\/blog\/fuel-is-expensive-7-ways-to-offset-fuel-surcharges-for-shipping\/","title":{"rendered":"Fuel Is Expensive! 7 Ways to Offset Fuel Surcharges for Parcel and LTL Shipping\u00a0"},"content":{"rendered":"\n

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)<\/a>. 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.\u00a0<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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<\/a>, including how fuel surcharges work and the steps you can take to reduce unnecessary shipping fees and make smarter transportation decisions. <\/p>\n\n\n\n

What is a fuel surcharge?<\/strong> <\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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<\/a>, can also affect your total shipping cost. <\/p>\n\n\n\n

Recent diesel prices at a glance<\/strong> <\/h3>\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n
EIA region<\/th>\n Diesel price per gallon, Sept. 14, 2026<\/th>\n Change from previous week<\/th>\n Change from year ago<\/th>\n <\/tr>\n <\/thead>\n
U.S.<\/td>\n $6.285<\/td>\n +$0.318<\/td>\n +$2.546<\/td>\n <\/tr>\n
East Coast<\/td>\n $6.158<\/td>\n +$0.414<\/td>\n +$2.410<\/td>\n <\/tr>\n
Midwest<\/td>\n $6.250<\/td>\n +$0.304<\/td>\n +$2.540<\/td>\n <\/tr>\n
Gulf Coast<\/td>\n $6.027<\/td>\n +$0.273<\/td>\n +$2.638<\/td>\n <\/tr>\n
Rocky Mountain<\/td>\n $6.066<\/td>\n +$0.261<\/td>\n +$2.344<\/td>\n <\/tr>\n
West Coast<\/td>\n $7.250<\/td>\n +$0.263<\/td>\n +$2.727<\/td>\n <\/tr>\n
California<\/td>\n $8.039<\/td>\n +$0.275<\/td>\n +$3.068<\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n\n\n

Source: U.S. Energy Information Administration, U.S. On-Highway Diesel Fuel Prices. Prices include all taxes. <\/em><\/p>\n\n\n\n

How do freight and parcel carriers calculate fuel surcharges?<\/strong> <\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

How freight fuel surcharges work<\/strong> <\/h3>\n\n\n\n

For freight shipping, carriers commonly use EIA diesel-price data<\/a> as a benchmark. What varies is how each carrier uses that benchmark to determine its fuel surcharge. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

How parcel fuel surcharges work<\/strong> <\/h3>\n\n\n\n

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. <\/p>\n\n\n\n

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<\/a> 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. <\/p>\n\n\n\n

Important note: A fuel surcharge isn’t always calculated on the base transportation rate alone. Depending on the carrier and service, certain accessorial charges<\/a>, 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. <\/p>\n\n\n\n

What could a parcel fuel surcharge look like?<\/strong> <\/h3>\n\n\n\n

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: <\/p>\n\n\n\n

($20 + $5) \u00d7 18% = $4.50 fuel surcharge<\/strong> <\/p>\n\n\n\n\n \n \n \n \n \n \n \n \n
Example charge<\/th>\n Amount<\/th>\n <\/tr>\n <\/thead>\n
Base transportation charge<\/td>\n $20<\/td>\n <\/tr>\n
Eligible accessorial charge<\/td>\n $5<\/td>\n <\/tr>\n
Amount subject to fuel surcharge<\/td>\n $25<\/td>\n <\/tr>\n
Illustrative fuel surcharge<\/td>\n 18%<\/td>\n <\/tr>\n
Fuel surcharge<\/td>\n $4.50<\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n\n\n

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.<\/em> <\/p>\n\n\n\n

7 ways to offset the impact of shipping fuel surcharges<\/strong> <\/h2>\n\n\n\n

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<\/a>, finding savings in those areas can help offset some of the impact. <\/p>\n\n\n\n

1. Compare carrier rates<\/strong> <\/h3>\n\n\n\n

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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

With the right shipping technology<\/a>, those comparisons can become part of your regular workflow instead of a time-consuming manual process. <\/p>\n\n\n\n

2. Consolidate shipments when it makes sense<\/strong> <\/h3>\n\n\n\n

When timing, shipment characteristics, and customer requirements allow, consolidation can help reduce the number of shipments you need to make. <\/p>\n\n\n\n

For LTL freight<\/a>, 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. <\/p>\n\n\n\n

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. <\/p>\n\n\n\n

3. Reduce avoidable accessorial charges and carrier fees<\/strong> <\/h3>\n\n\n\n

Higher fuel costs make unnecessary fees even more painful. For LTL freight shipments, carriers can assess accessorial fees<\/a> when a shipment requires services beyond standard pickup and delivery. Depending on the carrier and shipment, these may include: <\/p>\n\n\n\n