Middle East Conflict Extends to Shipping: U.S. Postal Service Plans 8% Surcharge on Some Packages to Address Oil Price Spike

The US Postal Service (USPS) announced on Wednesday that, in response to rising transportation costs—including increased fuel prices due to the Iran war—they are seeking to impose a temporary 8% fuel surcharge on parcels and express mail. This adjustment applies to Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select. Regular stamps and other mailing services are unaffected.

The USPS posted on its website that, pending approval from the Postal Regulatory Commission, the surcharge will take effect on April 26 and will last until January 17, 2027.

FedEx (FDX.US) and United Parcel Service (UPS.US), two major parcel carriers, have long charged fuel surcharges. Since the February 28 attacks by the US and Israel on Iran, these surcharges have increased significantly, with oil prices rising over 40% due to the strikes.

The USPS stated in its announcement, “This temporary price adjustment provides the flexibility needed to ensure that operational costs are covered, in line with Congressional requirements.”

The announcement added, “Transportation costs have been rising, and our competitors have also implemented surcharges. We have consistently avoided charging surcharges, and this adjustment’s fees are less than one-third of our competitors’ fuel surcharges. Even with this price change, USPS can still offer highly valuable shipping services at rates that are among the lowest in developed countries.”