Surcharge Watch: UPS and FedEx Shipping Cost Updates

• By Reveel
• September 3, 2025

Shipping costs are shifting fast, and with peak season right around the corner, every surcharge matters. This quarter brings new updates from UPS and FedEx that could significantly impact your budget if you’re not prepared.

Here’s what you need to know now to stay ahead of UPS and FedEx shipping surcharges before peak season hits.

August and September 2025 FedEx Surcharges

Non-Transportation Pickup Fees and Surcharges

• Effective Date: August 18, 2025
• Details: FedEx is implementing a new pricing structure for parcel pickups in the U.S. and Canada.
• Why It Matters: Shippers who depend on flexible or on-demand pickup may face increased costs due to per-stop charges. Weekend pickups now carry a higher marginal cost, so planning ahead could help mitigate expenses.

September 2025 UPS Surcharges

Demand and Peak Season Fees

After weeks of uncertainty, UPS has officially announced its 2025 Demand Surcharges (“Peak Surcharges”), which will apply beginning September 28, 2025 and remain in effect through January 17, 2026. These surcharges are in addition to all other applicable charges and are designed to address seasonal increases in shipping demand. Here’s what shippers need to know:

• Higher Baseline Surcharges

  • Additional Handling: $8.25 (off-peak) rising to $10.80 (peak holiday weeks).
  • Large Packages: $90.50 off-peak, rising to $107.00 at peak.
  • Over Maximum: $485 per package off-peak, rising to $540 at peak.
  • (By comparison, last year’s peak Large Package surcharge topped at $99.00, and Over Maximum at $495.)

• Residential, Air, and Ground Saver (formerly SurePost)

  • Ground Saver & Ground Residential: $0.40 per package off-peak, $0.60 at peak (vs. $0.25/$0.50 in 2024).
  • Next Day Air & All Other UPS Air: $1.10 per package off-peak, $2.05 at peak (vs. $1.00/$2.00 in 2024).

• High-Volume Shipper Framework

  • Customers shipping over 20,000 packages per week will face escalated surcharges tied to weekly volumes.
  • UPS has revised its methodology by adding a “ 0% to 105% of Baseline Volume” category and including Commercial Air / Express shipments in the calculation.

What Do These Surcharges Mean for Shippers?

Now that we have all of the info for UPS and FedEx demand fees, we know that shippers can expect higher costs on large, bulky, or residential shipments throughout the peak season.

Finance and budget teams should also account for increased holiday-week surcharges.

If your team has historically exceeded volume thresholds, it’s time to reevaluate your shipping strategy. High-volume shippers will now face stricter penalties if weekly volumes exceed baseline thresholds.

3 Ways to Prepare For The 2025 Peak Season

Peak season is merely weeks away! To gear up for increased shipping volumes and increased demand fees, shippers need to:

1. Ship Early and Smooth Demand: Avoid last-minute peaks that trigger higher surcharge tiers.
2. Diversify Carriers and Service Levels: Spread shipments across options to reduce concentrated exposure.
3. Focus on Execution: Leverage Reveel’s Actionable Insights to dive into key cost drivers such as Address Corrections, Additional Handling, and Large Package Surcharges.

It’s time to review your shipping plans for Q4 and early January to minimize the effect of these surcharges. If you need support in planning and cost optimization, reach out to our team of shipping experts.