Note: This article covers Ground and Express charges only. For a comprehensive overview of international and other fees, please refer to the FedEx and UPS websites.
Peak season planning is becoming more complex each year, and 2025 is no exception. Both FedEx and UPS have announced higher demand surcharges compared to last year, adding pressure to already tight Q4 shipping budgets.
FedEx released its peak season surcharges in July, slightly earlier than its August announcement in 2024. UPS, on the other hand, delayed its release until September, compressing the window between announcement and implementation.
Why the delay? Shifting consumer demand, evolving economic landscape, inventory uncertainty, and fluctuating shipping volumes may have prompted UPS to wait for more clarity before locking in rates.
With some demand surcharges taking effect as early as September 28, let’s dive into what’s changing and what it means for your bottom line.
FedEx 2025 Demand Surcharge Rates
Demand — Additional Handling Surcharge
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 6–9% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 29-Nov. 23, 2025 | $8.25 per package | $7.75 per package | 6.45% |
| Nov. 24-Dec. 28, 2025 | $10.90 per package | $10 per package | 9% |
| Dec. 29, 2025-Jan. 18, 2026 | $8.25 per package | $7.75 per package | 6.45% |
This surcharge applies when packages exceed weight, dimensional limits, or have non-standard packaging:
- Size: The package is longer than 48 inches on its longest side, longer than 30 inches on its second-longest side, or its total length and girth (length + 2 x width + 2 x height) exceeds 105 inches.
- Weight: The package’s actual weight is greater than 50 pounds.
- Packaging: The package isn’t fully enclosed in a standard cardboard box or is not made of cardboard, is covered in shrink wrap, or contains items like wheels, handles, or straps.
Demand — Oversize Charge
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 6–9% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 29-Nov. 23, 2025 | $90 per package | $84.50 per package | 6.51% |
| Nov. 24-Dec. 28, 2025 | $108.50 per package | $100 per package | 8.5% |
| Dec. 29, 2025-Jan. 18, 2026 | $90 per package | $84.50 per package | 6.51% |
This surcharge applies when packages exceed 96 inches in length or 130 inches in length and girth.
Demand — Ground Unauthorized Package Charge
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 9% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 29-Nov. 23, 2025 | $490 per package | $450 per package | 8.89% |
| Nov. 24-Dec. 28, 2025 | $545 per package | $500 per package | 9% |
| Dec. 29, 2025-Jan. 18, 2026 | $490 per package | $450 per package | 8.89% |
This surcharge applies to any package:
- Measuring more than 108 inches in length.
- Measuring more than 165 inches in length and girth combined.
- Weighing more than 150 lbs.
Demand Surcharge — Service Type
These demand surcharges are charged on a per-package basis by service type, and start about a month later than the surcharges above.
The biggest increases are in Ground services, where the lower-tier surcharge jumped from $0.30 last year to $0.40 this year—a 33% increase that can add up quickly for high-volume shippers.
Other service types also saw adjustments: Express services rose by 5%, while Ground Economy packages went up 12–16%.
The overall pattern mirrors last year, but with noticeably higher costs across categories.
| Service Type | Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|---|
| FedEx First Overnight®, FedEx Priority Overnight®, FedEx Standard Overnight®, FedEx 2Day® A.M., FedEx 2Day®, FedEx Express Saver® (excluding FedEx One Rate packages) | Oct. 27-Nov. 23, 2025 | $1.05 per package | $1 per package | 5% |
| Nov. 24-Dec. 28, 2025 | $2.10 per package | $2 per package | 5% | |
| Dec. 29, 2025-Jan. 18, 2026 | $1.05 per package | $1 per package | 5% | |
| FedEx Ground residential, FedEx Home Delivery residential | Oct. 27-Nov. 23, 2025 | $0.40 per package | $0.30 per package | 33.33% |
| Nov. 24-Dec. 28, 2025 | $0.65 per package | $0.55 per package | 18.18% | |
| Dec. 29, 2025-Jan. 18, 2026 | $0.40 per package | $0.30 per package | 33.33% | |
| FedEx Ground® Economy Package Services (contract-only service) | Oct. 27-Nov. 23, 2025 | $2.20 per package | $1.90 per package | 15.79% |
| Nov. 24-Dec. 28, 2025 | $3.55 per package | $3.15 per package | 12.7% | |
| Dec. 29, 2025-Jan. 18, 2026 | $2.20 per package | $1.90 per package | 15.79% |
Demand — Residential Delivery Charge
Each week, FedEx reviews a customer’s shipping volume and peaking factor using a set formula. This calculation determines the surcharge that will be applied. A two-week delay will apply between the shipping activity calculation and the surcharge application.
During the application week, the surcharge per package is determined by a peaking factor, which is calculated by taking the number of packages shipped in the calculation week, dividing it by your weekly average shipments from June 2–29, 2025, and then multiplying by 100. Peaking factor and amount charged are determined based on the type of U.S. package service.
Once a shipper exceeds a peaking factor, the demand residential delivery charge will be applied to all packages shipped in the application week. One very important note is that you do need to ship 20,000 packages during that week to qualify.
FedEx will be implementing these increases from October 27, 2025, to January 18, 2026, with the first calculation week beginning on October 6, 2025.
Compared to 2024, we are seeing a 5–7% increase for this demand surcharge.
| 2025 Demand — Residential Delivery Charge per Package | ||||||
|---|---|---|---|---|---|---|
| Peaking Factor | >105%-125% | >125%-150% | >150%-200% | >200%-300% | >300%-400% | >400% |
| FedEx Ground, FedEx Home Delivery services | $1.55 | $2.20 | $2.50 | $3.10 | $5.25 | $7.50 |
| 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 | $3.45 | $3.75 | $4.35 | $6.50 | $8.75 |
UPS 2025 Demand Surcharge Rates
Demand Surcharge — Additional Handling
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 6–9% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 28-Nov. 22, 2025 | $8.25 per package | $7.75 per package | 6.45% |
| Nov. 23-Dec. 27- 2025 | $10.80 per package | $9.95 per package | 8.54% |
| Dec. 28, 2025-Jan. 17, 2026 | $8.25 per package | $7.75 per package | 6.45% |
This surcharge is applied when a package requires special attention during shipping due to its size, weight, or shape:
- Size: A package with a longest side exceeding 48 inches or a second-longest side exceeding 30 inches.
- Unusual Packaging: An item encased in a metal or wooden container.
- Cylindrical Items: A barrel, drum, pail, tire, or other cylindrical item that is not fully enclosed in a corrugated cardboard shipping container.
Demand Surcharge — Large Package
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 6–8% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 28-Nov. 22, 2025 | $90.50 per package | $84.75 per package | 6.78% |
| Nov. 23-Dec. 27- 2025 | $107 per package | $99 per package | 8.08% |
| Dec. 28, 2025-Jan. 17, 2026 | $90.50 per package | $84.75 per package | 6.78% |
A package may trigger this surcharge if its length plus girth exceeds 130 inches or its length is over 96 inches.
Demand Surcharge — Over Maximum Limits
Structured by date, with higher charges during the busiest holiday weeks, this demand surcharge has increased 9% in 2025 compared to 2024.
| Effective Dates | 2025 Amount | 2024 Amount | % Difference |
|---|---|---|---|
| Sept. 28-Nov. 22, 2025 | $485 per package | $445 per package | 8.99% |
| Nov. 23-Dec. 27- 2025 | $540 per package | $495 per package | 9.09% |
| Dec. 28, 2025-Jan. 17, 2026 | $485 per package | $445 per package | 8.99% |
This surcharge applies to packages:
- with an actual weight of more than 150 pounds.
- that exceed 108 inches in length.
- or that exceed a total of 165 inches in length and girth combined.
Demand Surcharge — Service Level
These surcharges are applied on a per-package basis and vary by service type. They begin rolling out on October 26, following a similar cadence to the charges above.
The most notable shift from 2024 is the price increase. Last year, Ground Residential demand surcharges ranged from $0.25 to $0.50 per package. This year, they’ve climbed to $0.40 or $0.60, depending on the time frame.
| Service Level | Effective Dates | 2025 Amount | 2025 Amount | % Difference |
|---|---|---|---|---|
| UPS Ground Saver | Oct. 26-Nov. 22, 2025 | $0.40 per package | $0.25 per package | 60% |
| Nov. 23-Dec. 27, 2025 | $0.60 per package | $0.50 per package | 20% | |
| Dec. 28, 2025-Jan. 17, 2026 | $0.40 per package | $0.25 per package | 60% | |
| UPS Ground Residential | Oct. 26-Nov.22, 2025 | $0.40 per package | $0.25 per package | 60% |
| Nov. 23-Dec. 27 2025 | $0.60 per package | $0.50 per package | 20% | |
| Dec. 28, 2025-Jan. 17, 2026 | $0.40 per package | $0.25 per package | 60% | |
| UPS Air Services | Oct. 26-Nov. 22, 2025 | $1.10 per package | $1.00 per package | 10% |
| Nov. 23-Dec. 27, 2025 | $2.05 per package | $2.00 per package | 2.5% | |
| Dec. 28, 2025-Jan. 17, 2026 | $1.10 per package | $1.00 per package | 10% |
Higher Volume Shipping
Customers who ship more than 20,000 packages in any given week will be subject to the Higher Volume Shipper Tables (see below) for select UPS services, replacing the standard Demand Surcharge schedule referenced above.
Unlike FedEx, which assesses eligibility on a weekly basis, UPS applies the surcharge across the entire peak season once a shipper qualifies.
If you qualify, all per-package charges will be drawn from the Higher Volume Shipper Table. In previous years, UPS applied both a per-package surcharge and an additional fee based on how far you exceeded your baseline volume. That structure has now been simplified into a single, consolidated charge.
Similar to 2024, UPS will calculate your baseline shipping volume using your activity during the month of June. During peak season, they’ll compare your weekly volume against that baseline to determine your overage. Based on that overage, you’ll be assigned a per-package surcharge from one of several tiers. You may fall into different tiers depending on the service level.
| Higher Volume Shipper Table October 26 - November 22, 2025 & December 28, 2025 - January 17, 2026 |
|||||||
|---|---|---|---|---|---|---|---|
| Service Level | 0%-105% | >105%-125% | >125%-150% | >150%-200% | >200%-300% | >300%-400% | >400% |
| UPS Ground Saver | $0.40 per package | $1.60 per package | $2.15 per package | $2.45 per package | $3.10 per package | $5.30 per package | $7.50 per package |
| UPS Ground Residential | $0.40 per package | $1.60 per package | $2.15 per package | $2.45 per package | $3.10 per package | $5.30 per package | $7.50 per package |
| UPS Air Residential Services | $1.10 per package | $2.75 per package | $3.40 per package | $3.70 per package | $4.25 per package | $6.45 per package | $8.75 per package |
| UPS Air Commercial Services | $1.10 per package | $1.10 per package | $1.10 per package | $1.10 per package | $1.10 per package | $1.10 per package | $1.10 per package |
| Higher Volume Shipper Table November 23 - December 27, 2025 |
|||||||
|---|---|---|---|---|---|---|---|
| Service Level | 0%-105% | >105%-125% | >125%-150% | >150%-200% | >200%-300% | >300%-400% | >400% |
| UPS Ground Saver | $0.60 per package | $1.60 per package | $2.15 per package | $2.45 per package | $3.10 per package | $5.30 per package | $7.50 per package |
| UPS Ground Residential | $0.60 per package | $1.60 per package | $2.15 per package | $2.45 per package | $3.10 per package | $5.30 per package | $7.50 per package |
| UPS Air Residential Services | $2.05 per package | $2.75 per package | $3.40 per package | $3.70 per package | $4.25 per package | $6.45 per package | $8.75 per package |
| UPS Air Commercial Services | $2.05 per package | $2.05 per package | $2.05 per package | $2.05 per package | $2.05 per package | $2.05 per package | $2.05 per package |
Stay Ahead of Demand Surcharges with SiftedAI
Q4 shipping costs can escalate fast, and even small increases can snowball into major budget impacts.
SiftedAI provides a detailed breakdown of your UPS and FedEx demand surcharge impact, clearly outlining the key drivers behind your costs.
👉 Get your free demo today and see how SiftedAI can help you take a proactive, data-driven approach to managing demand surcharges and reducing their impact on your bottom line.
