FedEx and UPS raise fuel surcharges and add Middle East fees amid Iran conflict

Global parcel carriers FedEx and UPS have introduced new surcharges and increased fuel fees as the conflict involving Iran continues to disrupt logistics networks and push energy prices higher.

UPS implemented a temporary surge fee of $0.64 per pound for shipments moving between the United States and 15 Middle Eastern countries. The surcharge applies to services including UPS Worldwide Express and several related international offerings, and will remain in place until further notice.

FedEx has also introduced additional charges. The company began applying a $0.50 per pound demand surcharge earlier this month for parcel and freight shipments traveling from the United States to several countries across the Middle East, South Asia and Africa. Shipments moving in the opposite direction toward the U.S. are subject to a $0.70 per pound fee.

In addition, FedEx increased its surcharge on shipments to Israel from $0.50 to $1.50 per pound.

Industry analysts say the new fees are directly tied to the conflict in the Middle East and its impact on global energy markets. According to David Sullivan, director of professional services at ShipScience, shippers should prepare for further volatility in freight costs as the situation evolves.

Both carriers have acknowledged the operational impact of the conflict. UPS said it has activated contingency plans to limit disruption to customers, while FedEx confirmed that services have resumed in parts of the region where security conditions allow. However, shipments may face longer transit times.

Air cargo connectivity between the Indian subcontinent and Western markets has already been affected. Logistics provider Flexport reported that widespread airspace closures have forced carriers to take longer routes and carry heavier fuel loads, further tightening global air freight capacity.

Rising diesel prices are also pushing fuel surcharges upward. UPS fuel fees for air imports, for example, increased from 29.75% in early March to 34.5% by mid-March, with similar increases seen across FedEx pricing.

Experts warn that shippers should expect continued fluctuations in fuel surcharges, tighter capacity on affected corridors and increasing variability in monthly freight invoices as long as the conflict continues.

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