High gasoline and diesel fuel prices are hurting consumers, farmers and shippers. On top of that, the higher diesel prices are causing railroads, barge lines, truckers, airlines and delivery services like UPS and FedEx to increase fuel surcharges as the price of diesel continues to move higher, thanks in part to the surge in crude oil prices. Read more at "Diesel fuel explained" from U.S. Energy Information Administration (EIA): https://www.eia.gov/….

What does this mean? It means the higher fuel surcharge will trickle down to the U.S. consumer. Think of it as an increase in freight costs, for instance, rail rates. When rail tariff rates rise and/or secondary rail freight becomes expensive to buy, those costs are passed on to shippers and in turn normally to farmers via the basis posted at the elevator. Now, with the extra burden of an increase in the fuel surcharge, that will cost shippers more to move grain and/or other commodities shipped by rail.

As an example, here is the Norfolk Southern (NS) updated fuel surcharge and how they arrived at the price. Note the surcharge is tied to the national average price of on-highway diesel (OHD) fuel. On their website, NS says, "The fuel surcharge is applied to each shipment having a bill of lading dated on or after the 1st day of the second calendar month following the calendar month of a given OHD Average Price calculation. Mileage-Based (or 'On Highway') rates, including for our Industrial Products $2.50 Mileage-Based Program, are based on the average price of diesel for motor vehicles (plus tax) during the previous month."

As of March 1, 2026, according to their website, the NS surcharge amount was $0.26 against the average monthly OHD of $3.523, based on the month of January 2026. As of April 1, 2026, the NS surcharge amount is $0.31 against the average monthly OHD of $3.722 based on the month of February 2026. As of May 1, 2026, the NS surcharge amount will be $0.61 against the average monthly OHD of $4.921, based on the month of March 2026. Here is more information on the NS website: https://www.norfolksouthern.com/….

On March 25, 2026, the United States Postal Service, in a national press release, said it filed notice with the Postal Regulatory Commission (PRC) regarding a "time-limited price change" to better align its costs of transportation with the market. "The planned price change, which was approved by the Governors of the Postal Service on March 24, is an 8 percent increase that would affect base postage prices on the following retail and commercial domestic competitive products: Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select. No other products or services would be affected, including First-Class Stamps. Pending favorable review by the PRC, the price change would go into effect at midnight Central Time on April 26 and would remain in place until midnight Central Time on Jan. 17, 2027. At that time, the Postal Service can determine if a different long-term approach is needed." Link to the entire press release: https://about.usps.com/….

The bottom line is there are many more businesses that rely on any form of transportation, and it is likely they will impose a higher fuel surcharge until the U.S. and Israel-Iran conflict ends, and maybe beyond. Some businesses will adjust them weekly; others, like the railroad for instance, are monthly. Here is a link to a good article on April 3, 2026, covering almost all of the businesses that so far have increased their fuel surcharges: https://spectrumlocalnews.com/….

Mary Kennedy can be reached at mary.kennedy@dtn.com

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