Shipping Carrier Rate Change Updates
Below are the highlights of the most recent rate announcements.
UPS Rate Change Highlights
UPS has not yet released its demand (peak season) surcharges for 2025.
An announcement of new rates is expected soon. Stay tuned for more details.
Current UPS rate overview
There will be an average 5.9% general rate increase across base pricing and accessorial fees.
- Starting October 26, 2024, UPS added a 2% charge for all credit card payments
- Package minimums are now $11.32
- For most services, Shorter Zones (2-4) average increase is lower than the 5.9% increase to better compete with Regional Carriers
- Ground residential surcharge up from $5.65 to $6.15
- Delivery Areas Surcharges for Residential Ground up from $5.70 to $6.15
- Address Correction fee is now $23.50
- Less than 6% increase for UPS® Ground, UPS 3 Day®, UPS 2nd Day Air®, UPS Next Day Air Saver® and UPS Next Day Air
- Additional Handling and Large Package Surcharges are increasing over 26.5% on average and in addition, UPS announced new methods for determining Large Package Surcharge and Additional Handling Charge.
- Additional Handling (Weight, Dimensions, Packaging) charge will be replaced by a cubic volume for large packages as of January 27, 2025
- UPS has added a new 40-pound minimum billable weight for specific packages - which could cost you more for something large and light-weight
For more details and the full rate card, click here.
Source: Parcel
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FedEx Rate Change Highlights
Demand Surcharges for Peak Season
During times of elevated volumes, high demand for capacity, and increased operating costs across our network, FedEx will implement Demand surcharges. Demand surcharges are determined for each market based on regular assessments of shipment volume and capacity within our network to accommodate.
Stay tuned for 2025 Shipping Deadlines for Holiday Packages.
FedEx Demand Surcharges 2025
Additional Handling, Oversize Package, Additional Demand Surcharges
As FedEx prepares for high demand during the holiday shipping season, they are adjusting their networks to best deliver for customers. The surge in volume is expected to carry over into the new year.
To continue providing customers with the best possible service, they are implementing the following Demand Surcharges and fees.
| Demand Surcharge |
Sept. 29, 2025 - Nov. 23, 2025 |
Nov. 24, 2025 - Dec. 28, 2025 | Dec. 29, 2025 – Jan. 18, 2026 |
| Additional Handling | $8.25 per package |
$10.90 per package | $8.25 per package |
| Oversize Charge | $90 per package |
$108.50 per package | $90 per package |
| Ground Unauthorized Package Charge | $490 per package | $545 per package | $490 per package |
| Demand (FedEx First Overnight,® Priority Overnight,® Standard Overnight,® FedEx 2Day® A.M., FedEx 2Day,® FedEx Express Saver®) | $1.05 per package | $2.10 per package | $1.05 per package |
| Demand (FedEx Ground residential shipments and FedEx Home Delivery residential shipments) |
$0.40 per package | $0.65 per package | $0.40 per package |
| Demand (FedEx Ground® Economy Package Services) | $2.20 per package | $3.55 per package | $2.20 per package |
Residential Delivery Charge per Package by Peaking Factor
Residential Delivery Charge will adjust dynamically each week. During each calculation week (defined below), customer’s shipping volume and peaking factor will be calculated based on the formula set forth below to determine the surcharge amount applied for the corresponding application week (defined below). A two-week lag will apply between the shipping activity calculation and the surcharge application. See the table for all calculation weeks and application weeks.
| Service Level |
>105%-125% | >125%-150% |
>150%-200% |
>200%-300% |
>300%-400% |
>400% |
| FedEx Ground, FedEx Home Delivery services |
$1.55 per package |
$2.20 per package | $2.50 per package | $3.10 per package | $5.25 per package | $7.50 per package |
| FedEx First Overnight,® FedEx Priority Overnight,® FedEx Standard Overnight,® FedEx 2Day® A.M., FedEx 2Day,® FedEx Express Saver® (excluding FedEx One Rate packages) |
$2.80 per package |
$3.45 per package | $3.75 per package |
$4.35 per package |
$6.50 per package |
$8.75 per package |
Residential Delivery Charge calculation weeks/application weeks schedule
“Calculation week” is the week during which customer’s shipping volume is calculated. “Application week” is the week during which the surcharge is applied based on the corresponding calculation week.
For customers at the enterprise level who ship more than 20,000 residential* and FedEx Ground Economy packages (total for U.S. domestic shipments) during a calculation week, the Demand — Residential Delivery Charge will apply for the corresponding application week. The Demand – Residential Delivery Charge will be assessed in addition to the Residential Delivery Charge and any contracted discount or cap the customer may have on the Residential Delivery Charge will not apply to the Demand – Residential Delivery Charge.
The amount charged per package during the application week will be based on a peaking factor, reflected as a percentage increase in the chart below, which is determined by dividing the residential* and FedEx Ground Economy packages shipped during the corresponding calculation week by the weekly average residential* and FedEx Ground Economy packages shipped June 2, 2025-June 29, 2025, and then multiplying by 100. Peaking factor and amount charged are determined based on the type of U.S. package service.
For purposes of calculating weekly volume during any calculation week that contains a holiday, weekly package volume will be adjusted to account for the one fewer operating day by multiplying the volume tendered during the week by 5 and then dividing by 4. For example, if a customer’s weekly volume tendered is 10,000 packages, simply multiply 10,000 by 5, then divide that number by 4 to calculate the weekly volume during a calculation week.
*Excludes FedEx One Rate packages
| Peaking Period | Calculation Week | Application Week |
| October 6 - 12, 2025 | October 27 - November 2, 2025 | |
| October 13 - 19, 2025 | November 3 - 9, 2025 | |
| October 20 - 26, 2025 | November 10 - 16, 2025 | |
| October 27 - November 2, 2025 | November 17 - 23, 2025 | |
| November 3 - 9, 2025 | November 24 - 30, 2025 | |
| November 10 - 16, 2025 | December 1 - 7, 2025 | |
| November 17 - 23, 2025 | December 8 - 14, 2025 | |
| November 24 - 30, 2025 | December 15 - 21, 2025 | |
| December 1 - 7, 2025 | December 22 - 28, 2025 | |
| December 8 - 14, 2025 | December 29, 2025 - January 4, 2026 | |
| December 15 - 21, 2025 | January 5 - 11, 2026 | |
| December 22 - 28, 2025 | January 12 - 18, 2026 |
Current FedEx rate overview
There will be an average 5.9% general rate increase across base pricing and accessorial fees.
- Package minimums are now $11.32
- Additional Handling Surcharge (Weight) for zone 3-4 is up $10 from $37.50 to $47.50
- Large package surcharge up over 26% for Home Delivery with zone 2 increasing from $190 to $240
- Address Corrections up from $22.50 to $24.00 - it's more important than ever to address your address issues
- Delivery Area Surcharges up almost 7.5% for most options
- Remote area surcharge continues in 2025 and rises from $14.15 to $15.35 per package, a 8.5% increase for 2025
For more details and the full rate card, click here.
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*Discounts off UPS daily rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.