It means higher costs and lower margins and possibly less demand. I mean, that's really what it means. I'm sure you've seen diesel prices hit five bucks.We haven't seen that since September of 2020 to back in 2022. Fuel accounted for about 28% of a truckers cost. It typically hovers around 20 to 25%.So, you know, hopefully the prices that we're seeing now are temporary. Obviously, that all depends on what's going on in the Middle East. But it's definitely going to crimp margins and probably crimp demand jus ...

Core Insights - UPS and FedEx have introduced temporary surcharges for shipments between the U.S. and the Middle East due to the ongoing Iran war, which is straining logistics networks [1][4] Group 1: UPS Surcharges - UPS has implemented a $0.64 per-pound surge fee for shipments from the U.S. to 15 Middle Eastern countries and vice versa, effective until further notice [2] - The surcharge applies to UPS Worldwide Express and five other services [2] Group 2: FedEx Surcharges - FedEx has introduced a $0.50 per-pound demand surcharge for shipments from the U.S. to various countries in the Middle East, South Asia, and Africa, effective earlier this month [3] - A $0.70 per-pound fee is now applicable for shipments from those regions back to the U.S. [3] - Additionally, FedEx has raised the surcharge for shipments to Israel from $0.50 to $1.50 per pound [3] Group 3: Impact of Geopolitical Events - The surcharges are a direct response to the Iran war, oil price concerns, and geopolitical risks, leading to expectations of price volatility and targeted lane fees [4] - Both UPS and FedEx have acknowledged the conflict's impact on their services, with UPS implementing contingency plans to mitigate customer impact [5] Group 4: Logistics Challenges - Extensive airspace closures in the Middle East are complicating connectivity between the Indian subcontinent and North America and Europe, forcing carriers to take longer routes and carry heavier fuel loads [6] - This situation is straining available air freight capacity [6] Group 5: Future Considerations - Shippers should anticipate fluctuations in fuel surcharge pricing, longer transit times, capacity pressures, and potential variations in monthly invoices [7] - Weekly fuel surcharge rates for FedEx and UPS are expected to increase further due to rising diesel prices, with the Strait of Hormuz being a critical oil chokepoint [7]