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Surcharges & fees
FedEx

FedEx Domestic Fuel Surcharge Update

Effective Date: June 1, 2026 (announced on May 18, 2026)
Reviewed & Verified by:
Dave Sullivan

Summary

FedEx has announced structural changes to two of its domestic fuel surcharge tables, effective June 1, 2026: the diesel-indexed table covering FedEx Ground, Home Delivery, and International Ground, and the jet-fuel-indexed table covering FedEx Express package services. In each case FedEx is raising the "pivot" price at which the table switches from coarse to fine steps — from $3.55 to $4.99 per gallon of diesel for Ground, and from $2.06 to $3.01 per gallon of jet fuel for Express. At or above each new pivot the surcharge is unchanged; below it, the surcharge will be higher than under the current table at the same fuel price.

Analysis

Both tables move in 0.25% increments, but the step size depends on the fuel price. Above the pivot the surcharge steps every $0.09 (Ground) or $0.05 (Express); below the pivot it steps far more slowly, every $0.27 (Ground) or $0.21 (Express). By raising the pivot, FedEx widens the price range governed by the slow-moving tier — so as fuel declines, the surcharge falls more gradually and stays elevated longer. The current and new tables are identical at and above each new pivot; the entire change sits below it.

The effect is larger for Express and reaches shippers more consistently. At roughly $3.72/gallon diesel, the Ground surcharge rises about 2.5 percentage points, topping out near 2.75 points at lower diesel prices. For Express, the gap reaches about 2.0 points at $2.50 jet fuel, 3.0 points at $2.25, and up to about 3.75 points near $2.00 — and because jet fuel typically trades within the affected $2.00–$3.01 range, Express shippers are almost always in the zone where the new table costs more.

Impact on Shippers

Any shipper with meaningful Ground, Home Delivery, International Ground, or Express package volume should expect higher fuel surcharge costs whenever fuel sits below the new pivot. Because the surcharge is assessed on the net transportation charge plus most accessorials, a higher percentage compounds across the invoice — and the increase is structural, not tied to a temporary price spike. Shippers who built 2026 fuel budgets off the current tables, or off the January GRI headline, which does not capture this, should re-baseline against the new tables before the effective date.

Key Takeaways

💡 Effective June 1, 2026, FedEx is re-indexing both its Ground (diesel) and Express (jet fuel) fuel surcharge tables by raising the pivot price — $3.55→$4.99 for Ground and $2.06→$3.01 for Express.
💡 At or above each new pivot the surcharge is unchanged; below it, the surcharge declines more slowly, so you pay more at the same fuel price.
💡 The impact is larger and more consistent for Express — up to ~3.75 points versus ~2.75 for Ground — because jet fuel typically trades right in the affected range.
💡 Re-baseline fuel budgets, landed-cost models, and DDP or cost-to-serve assumptions against the new tables; the January GRI headline does not reflect this change.

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