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FedEx, UPS grapple with surcharge strategy as Amazon expands logistics footprint

Major parcel carriers are deploying surcharges across broader geographic and service areas to manage margin pressure from fuel costs. FedEx announced new import fees for European Union shipments and expanded pickup and delivery surcharges to more than 200 additional zip codes. These moves reflect carrier reliance on ancillary fees rather than broad rate increases to offset operational costs. Meanwhile, Amazon has launched a full-scale less-than-truckload service available to third-party businesses, opening its trucking network to partial-load shippers. Industry analysts remain divided on Amazon's long-term competitive threat to legacy carriers in the LTL segment, though pricing pressure could intensify if the e-commerce giant captures meaningful market share. The combination of surcharge expansion and new competitive capacity is reshaping shipper economics across parcel and LTL markets.