Prior to 2020, holiday surcharges at the United States Postal Service were unheard of. FedEx and UPS increased their rates each peak season, but the USPS offered the same service and rates throughout the year.

That’s not the case anymore.

USPS just announced its temporary 2025 holiday season surcharges, calling them “a strategic part of the Delivering for America 10-year plan” which will “support the Postal Service in creating a revitalized organization capable of achieving our public service mission... in a cost-effective and financially sustainable manner over the long term, just as the U.S. Congress has intended.” These surcharges show that the national carrier can stand shoulder-to-shoulder (or truck-to-truck) with FedEx and UPS.

Today we’ll talk about when the increased rates take effect, who’s affected, and how to save money on shipping— even during the busiest season of the year.

When Do the USPS Surcharges Take Effect?

The Postal Service filed notice with the Postal Regulatory Commission (PRC) regarding temporary price increases, in line with the holiday season. If approved by the Postal Regulatory Commission, the surcharges will be in effect October 5, 2025, at midnight Central Time, through January 18, 2026, at midnight Central Time, USPS’s fees take effect a full 22 days before FedEx’s. As of this writing, UPS has not yet announced its peak season surcharges for 2025.

Who Do These Surcharges Affect?

According to USPS’s press release, these surcharges will affect both retail and commercial customers.

All parcels sent through Priority Mail, Priority Mail Flat Rate, Priority Mail Express, Priority Mail Express Flat Rate, and USPS Ground Advantage will incur an additional fee during the holiday season. Retail surcharges range from $0.40 to $16 per package based on the parcel's weight, level of service, and delivery zone. USPS will add surcharges on its commercial services at a slightly lower rate, from $0.30 to $13.

In comparison, FedEx surcharges (not including additional handling and unauthorized or oversized parcels) range from $0.40 to $3.55.

Despite its surcharges, USPS says, “The Postal Service has some of the lowest mailing rates in the industrialized world and continues to offer great values in shipping.”

How Can I Save Money During Peak Season?

While the USPS offers slightly lower rates to commercial customers, company-specific pricing is still fairly uncommon. For the quickest deal with USPS, customers can opt in to the Click-N-Ship Business Rate Card, which unlocks lower, non-published rates for commercial customers.

FedEx and UPS, on the other hand, are willing to negotiate with customers on a case-by-case basis at any point during their contracts. If you’re wondering whether you’re paying too much for shipping or hoping to save despite impending peak surcharges with UPS and FedEx, sign up for a free savings analysis with ShipRx.

We have a 100% success rate helping our customers save money, and we’re eager to help you save, too.

We’ll assess your current shipping expenses, review your contracts with FedEx and UPS, and create a detailed report outlining savings opportunities. The holidays are just around the corner. Set up your savings analysis today to lock in savings before peak surcharges hit.