Major air and ocean freight carriers are introducing new surcharges and raising existing ones as global shipping networks face disruptions.
Shipping costs in Canada and around the world are rising as global freight networks face growing disruptions due to unrest in the Middle East.
Carriers across airfreight and ocean shipping are responding with new surcharges, rerouting, and other service adjustments as fuel costs rise and capacity tightens.
The increases in air freight rates are driven by airspace closures and security concerns across the Middle East, which have severely disrupted major cargo hubs.
Ocean shipping is also under pressure. Major container lines have diverted vessels away from the Strait of Hormuz, with about 150 container ships reported stranded at the start of March.
Air Canada Cargo announced a new airfreight surcharge effective March 23, 2026, to help partially offset rising fuel prices, airport and en route fees, and currency-related cost fluctuations. The surcharge varies by haul length: CAD 0.17/kg for short-haul shipments within North America, USD 0.20/kg for medium-haul shipments to Canada, and USD 0.37/kg for long-haul shipments to Canada.
UPS Canada's fuel surcharge for international Express, Expedited and 3 Day Select shipments jumped from 27% to 30.75% for the week of March 16. Its domestic Express and Expedited rates rose from 26.75% to 30% over the same period, with Standard service within Canada rising to 29.5% and to the U.S. to 19%.
FedEx Canada's fuel surcharges also rose for the week of March 16, with intra-Canada Express shipments climbing from 29.5% to 36.5%, and international Express services rising from 26.75% to 30.75%. FedEx Ground intra-Canada and pickup services rose from 29.5% to 36.5%, while FedEx Freight surcharges increased from 35% to 42% on LTL (less-than-truckload) and from 56.5% to 63.5% on truckload shipments.
Both UPS and FedEx adjust their rates weekly based on published fuel prices.
Maersk Air Freight also introduced a Transit Disruption Surcharge to cover the additional costs of securing capacity and rerouting shipments during affected air operations.
Canadian businesses shipping to or from the Middle East are also facing per-pound surge fees.
UPS Canada's Surge Fees on shipments are assessed on a per-pound or per-kilogram basis based on the shipment's billable weight.
Similarly, FedEx has applied a $0.50-per-pound demand surcharge to parcel and freight shipments to many countries in the Middle East, South Asia, and Africa, with a $0.70-per-pound fee for shipments from those countries to Canada. For shipments to and from Israel specifically, FedEx has raised its surcharge to $1.50 per pound.
Major container lines, including CMA CGM, MSC, Hapag-Lloyd, and Maersk, have suspended bookings, rerouted vessels, or imposed surcharges on some services, adding further pressure on shipping costs across global supply chains.
Earlier this month, CMA CGM introduced an Emergency Conflict Surcharge covering shipments to or from Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the UAE, Saudi Arabia, Jordan, Egypt (Port of Ain Sokhna), Djibouti, Sudan, and Eritrea. The carrier also introduced an Emergency Fuel Surcharge.
MSC (Mediterranean Shipping Company) also introduced an Emergency Fuel Surcharge, effective April 9, 2026, covering cargo from Asia to Canada and the U.S.
Hapag-Lloyd introduced a War Risk Surcharge of USD 1,500 per TEU for standard containers and USD 3,500 per box for reefers and special equipment, effective March 2, covering cargo to and from the Upper Gulf, Persian Gulf, and Arabian Gulf. The carrier also introduced an Emergency Fuel Surcharge.
Maersk introduced two separate surcharges. An Emergency Bunker Surcharge applies globally from March 25, 2026, not just Middle East routes, and will be monitored regularly and adjusted based on fuel availability, cost, and mix. Moreover, shippers with cargo loading from or destined to ports in Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, the UAE, and Oman are also subject to an Emergency Freight rate to cover alternative routing and storage costs.
At Cole International, we offer trade consulting and freight forwarding services to help Canadian businesses navigate disruptions and manage shipping costs.
Reach out to one of our trade professionals to discuss your shipping strategy and how to keep your freight moving amid changing global conditions.