Holiday shipping chaos is arriving earlier than ever, putting Santa—and every shipper—on high alert. FedEx got a jump on the holiday season, announcing peak surcharges on July 8, which will take effect on October 27. The USPS’ holiday surcharges begin 22 days before those of FedEx. And from UPS, there was silence. The carrier announced driver and manager buyouts and updated its dimensional pricing strategy, leaving shippers wondering what they could expect from UPS this holiday season.

On August 28, UPS finally revealed its peak holiday surcharges, revealing a plan that benefited both customers and the carrier. Today, we’ll share this season’s peak season pricing, how it compares to last year’s, and how you can save.

A Look at 2024

Comparison may be the thief of joy, but it’s essential for budgeting. Last year, surcharges for UPS Air, Ground Residential, and SurePost packages ranged from $0.25 to $2 per package. When parcels sent via Ground Residential, SurePost, Next Day Air Residential, and all other Air Residential services exceeded their weekly baseline volume by more than 105%, surcharges ranged from $1.50 to $8.25 per parcel.

UPS Peak Pricing in 2025

This year, customers shipping via UPS Air, UPS Ground Residential, and UPS Ground Saver will see demand pricing ranging from $0.40 to $2.05 per package on parcels sent between October 26 and January 17.

Higher-volume shippers, defined as those that shipped more than 20,000 packages in any single week after October 2024, will be subject to a sliding scale based on peak-season volume. From October 26, 2025, through January 17, 2026, some UPS Air Residential, UPS Air Commercial, UPS Ground Residential, and UPS Ground Saver customers will incur demand fees ranging from $0.40 to $8.75, depending on the timeframe and volume shipped compared to the shipper’s baseline.

In addition to these demand surcharges, UPS will apply per-package fees for parcels requiring additional handling, as well as large package surcharges and over maximum limits. These fees go into effect from September 28, 2025, through January 17, 2026:

● Additional handling surcharge: $8.25 - $10.80 per package
● Large package surcharge: $90.50 - $107 per package
● Over maximum limits: $485 - $540 per package

It should be noted that each of these maximum figures is lower than the highest maximum charged by FedEx— even if only by $.10.

How Can You Minimize or Avoid These Surcharges?

Last week, we published an article detailing four ways you can mitigate your holiday shipping expenditures this season. Here’s a quick refresher on two ways to save before Santa’s sleigh is fully packed:

If possible, choose your shipping windows wisely: During the busiest season, from November 23 to December 27, fees are highest for all types of surcharges.

Negotiate lower rates and reduced surcharges: The carriers make sweeping rate announcements, but not every shipper pays the same surcharge. Negotiate discounts or waivers to reduce your financial burden during the holidays and beyond.

Contact the team at ShipRx today for a free Savings Analysis. We’ll assess your current contract and shipping needs to help you save.