Fuel Surcharges Are Changing – What It Means for Your Shipping Costs
Fuel surcharges are shifting across major carriers as fuel prices continue to fluctuate. For businesses relying on shipping and fulfillment, even small percentage changes can have a noticeable impact on overall costs.
What is a Fuel Surcharge?
Shipping costs are typically made up of:
- A base rate (based on size, weight, and distance)
- A fuel surcharge (a percentage added on top)
For example:
A $10 shipment with:
- 5% fuel surcharge = $10.50
- 10% fuel surcharge = $11.00
While the increase may seem small per order, it adds quickly at scale.
Recent Updates
We’re currently seeing movement in fuel surcharges across multiple carriers.
The Australian Government has announced a temporary reduction in fuel excise for 3 months, which may help reduce fuel costs by approximately 26.3 cents per litre. While this may ease pressure, surcharge adjustments from carriers can still move independently over time.
What You Can Control
While fuel pricing is outside your control, there are ways to manage the impact:
- Review your free shipping thresholds
- Adjust shipping rates at checkout
- Factor shipping into product pricing
- Monitor carrier changes regularly
Need help understanding how fuel surcharges impact your business?
Get in touch with our team, we’re here to help you stay cost-efficient and competitive.
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