The saying “better late than never” doesn’t apply to General Rate Increases (GRIs).

On October 31, UPS announced its 2026 GRI, saying, “The Daily Rates for UPS® Ground, UPS Air and International services will increase an average net 5.9%.” They say the increase “helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.” The late announcement of the UPS 2026 GRI (and its early start) will cut into many shippers’ profits this holiday season.

Today, we’ll discuss the 2026 UPS GRI, additional pricing updates for the carrier,  how the UPS GRI compares with FedEx’s, and how you can save on shipping in 2026.

What Else is New for UPS in 2026?

Daily and small business rates for parcels shipped via UPS Ground, UPS Air, and International services will increase by an average of 5.9% on December 22, 2025, but that’s not the full extent of the 2026 GRI. Here are some other changes taking effect next month:

●       Updated zones for Area Surcharges
●       Updated list of ZIP codes that will be assessed an Area Surcharge
●       Increased surcharges for a variety of services, including Additional Handling, Dangerous Goods, Delivery Area Surcharges, and more

The surcharge on parcels requiring Additional Handling based on weight to Zones 7+ will increase from $55 to $58.75 per package. Residential surcharges for air parcels will jump from $6.55 to $7 per package.

When calculating your 2026 shipping budget, be sure to consider surcharges in addition to the GRI.

How Do These Rates Compare to FedEx?

Published nearly two months ago, FedEx announced a similar 5.9% rate increase for 2026. One major (and potentially expensive) difference? FedEx’s rates go into effect January 5, 2026, 13 days before the end of peak season and after the highest surcharges.

UPS rates take effect on December 22, 2025, 26 days before the end of peak season. One more not-so-welcome surprise? Five of those days are subject to the highest surcharges. Companies that budgeted for surcharges on their current rates will see a nearly 6% reduction in their profit margins this holiday season. This isn’t new. Last year, UPS’s GRI went into effect on December 23, 2024.

What Can You Do to Minimize Your UPS Rates in 2026?

Every course of action should begin with reading the fine print: “The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.”

If you want to lower your rates, you need to renegotiate your UPS agreement. The team at ShipRx has over three decades of experience writing and negotiating shipping contracts—first for the carriers, now for businesses like yours. We’ll assess your current contract, determine potential for savings, and assist you in securing the lowest possible rates.

December 22 will be here before we know it. Will you be paying 5.9% more on top of demand surcharges? Or will your new contract grant you much-needed holiday spending relief that lasts all year?

Contact us today for a free Savings Analysis!