September 9, 2025

2025 Holiday Surcharges: How UPS & FedEx Just Raised the Stakes

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What’s Changing for 2025 Peak Season?

Carriers just dropped their 2025 holiday surcharge schedules — and this year’s increases are steeper than ever.

  • UPS: Peak surcharges begin September 28 and run through January 17, 2026. They affect service fees across the board:
    • Additional Handling: rises to $8.25 – $10.80
    • Large Package: up to $90.50 – $107
    • Over Maximum: surging to $485 – $540 per package
    • Demand Surcharge (all Air, Ground Residential & Ground Saver): $0.40 – $2.05, and up to $8.75 for high-volume shippers  
  • FedEx: Demand surcharges run from September 29 to January 18, 2026, with peak rates during the key Nov 24 – Dec 28 window:
    • Additional Handling: $8.25 → $10.90
    • Oversize: $90 → $108.50
    • Ground Unauthorized: $490 → $545
    • Express & residential demand surcharges ranging from $0.40 – $3.55 per package
    • Enterprise-level, high-volume customers face dynamic weekly residential surcharges between $1.55 – $8.75 based on volume deviation  

The Surcharge Impact Goes Deeper Than You Think

These aren’t just minor bumps — for businesses that rely on shipping large or residential packages, holiday surcharges can easily become a 10–20% increase in cost. Some categories like “over maximum” shipments could see charges north of $500 per package during peak weeks.

What Shippers Should Do Now (Before Q4)

Audit your service-level volume mix

Are you shipping more residential or oversized packages? These surcharges hit hardest where volume peaks.

Negotiate holiday discounts

With surcharges announced late, ask your carrier rep now for relief — many still have flexibility. Experts say: “Ask — because why not?”  

Use alternative carriers

Regional or ABC carriers may not impose peak-season surcharges — or they may be significantly lower.

Prep your customers

Encourage early ordering or incentivize delivery to business addresses to avoid steep surcharges.

Why RCS Clients Stay Ahead

Our clients track shipment patterns weekly, spotlight surcharge trends in advance, and have negotiating strategies ready before surcharge periods arrive. That’s how they avoid surprise costs while competitors scramble during the holidays.

Start Parcel Audit and Get Control of your Shipping Costs - ACT NOW

This holiday season is shaping up to be tougher than ever for shipping budgets — but knowing the 2025 surcharge rules gives you a huge advantage. Want us to map the surcharge exposure across your lanes and find early savings? Just reach out and say “surcharge checks” and let’s get it done.

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