Paper mills are beginning to announce fuel and freight surcharges tied to higher diesel costs, adding another consideration for buyers planning upcoming orders. Sylvamo, Sustana, Billerud and Sappi have announced charges, each with its own effective dates, coverage and review provisions.
For customers, whether a charge applies can depend on when an order was received and acknowledged, when it ships, or its confirmed delivery date.
Announcements to date
Sylvamo announced a $1.00 per hundredweight surcharge on covered paper shipments, effective October 1, 2026. An exception applies to orders received and acknowledged before September 25. The surcharge is equivalent to $20 per U.S. short ton.
Sustana announced a $20-per-ton surcharge on all grades and formats shipped beginning October 12, 2026.
Billerud announced a $25-per-ton surcharge on applicable paper and paperboard orders with confirmed delivery dates of November 1, 2026, or later.
Sappi announced a $25-per-ton surcharge on covered graphics shipments delivering November 6, 2026, or later. Covered products include McCoy, Opus, Somerset, Flo, Private Label, EuroArt and Galerie.
Why I favor the surcharge approach
While an additional charge increases purchasing costs, I favor a separate fuel or freight surcharge over incorporating those costs into the base paper price. When fuel costs decline, a surcharge provides a clearer path for the additional charge to be reduced or removed, subject to each mill’s stated terms. In my experience, when those same costs become part of a product price increase, the corresponding price reduction tends to take longer to follow.
The value is in having a visible charge with defined review conditions. Buyers can understand what the adjustment covers and what needs to happen for it to come off.
The mills have different approaches to reviewing or removing these charges. Sylvamo, Billerud and Sappi have specified diesel-price benchmarks, while Sustana will review its surcharge weekly. Customers should consult the applicable mill notice for the exact conditions governing any adjustment or removal.
What buyers should expect
These announcements do not follow a single implementation schedule. Sylvamo’s notice includes an exception based on order receipt and acknowledgment. Sustana’s effective date is tied to shipment, while Billerud and Sappi specify delivery dates.
Before placing or confirming an order, buyers should establish whether the product is covered, which date determines applicability, and whether the surcharge is included in the quoted price or will appear separately.
Open orders deserve particular attention. An earlier order date does not automatically establish an exemption; the specific supplier terms govern.
Understanding these details will help customers budget accurately and avoid invoice surprises. This update can be expanded as additional mills announce fuel or freight surcharges and existing charges are reviewed.
About the Author
Steve Heavener is an Enterprise Account Executive, Print Solutions, with Bulkley Dunton Communications, a division of Veritiv Corporation. With decades of experience in the graphic paper industry, he focuses on developing strategic paper programs for end users, publishers, and printers. He is known for his insights into market dynamics and supply trends across North America.
