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]