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Prepare Your Wallet: FedEx Demand Surcharges Are Here

2025-07-15T00:00:00Z

You've probably noticed the "holiday creep" in your local craft store or Target. The sulfurous tang of fireworks only just dissipated after the Fourth of July, but shops are stocking Halloween candy as if back-to-school doesn't even exist. Shops aren't the only ones skipping ahead.

Last year, FedEx announced its demand surcharges in August. This year, the carrier released its peak season rates on July 8. We'll take a deep dive into FedEx's 2025 demand surcharges— when they take effect, what you can expect, and whether it's possible to reduce them.

When Do These Charges Take Effect?

In 2025, the surcharges will commence on September 29 and October 27 and will end on January 18, 2026. For reference, last year, FedEx demand surcharges began on September 30 and October 28 and ended on January 19, 2025.

What Are the 2025 FedEx Demand Surcharges, and How Do They Differ From 2024?

FedEx announced the latest increases on its website, saying, "As FedEx prepares for high demand during the holiday shipping season, we are implementing the following Demand Surcharges and fees to continue providing our customers with the best possible service."

Demand surcharges in 2024 ranged from $0.30 to $3.15 per package. This year, the surcharge ranges from $0.40 to $3.55, depending on the timeframe and service selected.

In addition to the demand surcharges, you may also be affected by these surcharges:

● Additional handling surcharge: $8.25 - $10.90 per package
● Oversize charge: $90 - $108.50 per package
● Ground unauthorized package charge: $490 - $545 per package

What's New for Enterprise-Level Customers?

If you're an enterprise-level customer that ships more than 20,000 residential and FedEx Ground Economy packages per week, a peaking factor will determine your demand residential charge per package. With a baseline established between June 2 and June 29, 2025, customers can expect demand residential charges ranging from $1.55 to $8.75 per package. FedEx will monitor volume for calculation two weeks before the application period (e.g., FedEx will calculate shipping volume from October 6 to 12 and apply the surcharge from October 27 to November 2).

FedEx clarifies that it will add this demand residential delivery charge on top of existing residential delivery charges and notes that "any contracted discount or cap the customer may have on the Residential Delivery Charge will not apply to the Demand – Residential Delivery Charge."

Is It Possible to Reduce These Charges?

Despite FedEx's language suggesting otherwise, it is absolutely possible to reduce your spend, even during peak season. With ShipRx parcel negotiations, you can renegotiate your contract at any time, lowering your base rate and even reducing the amount you owe for demand surcharges.

Sign up for a free savings analysis today, and trust the team that has a 100% success rate in lowering contracted rates. Most clients see savings of 20-30% or more, as ShipRx negotiates, structures, and continually evaluates your FedEx parcel contract to help you maximize your savings.

Demand surcharges are just a few months away. What will you do between now and then to reduce that expenditure?

Teamsters Furious About UPS Driver Buyout Offers

2025-07-08T00:00:00Z

UPS's drive to eliminate positions in its workforce has finally come for the rank and file. Just two years after UPS narrowly avoided a strike by its unionized Teamsters employees, the carrier is in hot water with the union once more.

On July 3, UPS announced that, due to reconfigurations, all drivers are now eligible for a voluntary buyout offer. Why the buyout? How has the Teamsters union responded? And how can you protect your bottom line as UPS reduces its workforce? We'll share everything you need to know.

What is UPS offering?

UPS has introduced a voluntary program for its full-time U.S. drivers, offering a "generous financial package" to those who choose to leave the company. This payout is in addition to any earned retirement benefits, including pension and healthcare.

Why now? As UPS cuts 50% of Amazon parcel volume by the end of 2026, it also plans to reduce its workforce by 20,000 positions by the end of 2025. UPS says it's "executing the largest network reconfiguration in UPS history" because of the changing business landscape. UPS states that it has engaged with the Teamsters union regarding this program and reaffirms its commitment to the agreements reached in 2023, emphasizing the crucial role of its drivers in the company's success and the importance of reliable service.

What Does Teamsters Have to Say About the Buyout?

The Teamsters website tells a different story.

The union's General President Sean M. O'Brien calls this buyout an "illegal violation" of the agreement reached in 2023. He says, "UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts in front of Teamsters drivers."

Here's a refresher on a few items from the 5-year agreement reached in 2023:

●       Promote 22,500+ part-time workers to permanent full-time positions
●       Create 7,500+ additional full-time jobs in the contract's final three years, which begin at the end of this month
●       Provide 28,000 air-conditioned vehicles by 2028

The Teamsters union prides itself on ensuring that unionized UPS employees with more than 30 years of service receive employer-paid healthcare throughout retirement. Drivers who accept this voluntary buyout would likely not receive quality health insurance.

Teamsters General Secretary-Treasurer Fred Zuckerman calls on drivers to "reject this illegal and insulting buyout when UPS makes it public."

Will 20,000 Fewer Drivers Affect You?

The potential reduction of 20,000 drivers raises questions about the impact on UPS's delivery services and, consequently, on businesses and consumers. While UPS aims to optimize its network and potentially increase efficiency through reconfigurations and automation, a significant reduction in its workforce could lead to changes in delivery speeds, service areas, and overall capacity, particularly if the transition is not seamless or if unforeseen challenges arise.

Weekly parcel audits can help you hold UPS accountable for delivering as contracted. ShipRx automatically performs more than 40 checks on every parcel you send, ensuring you never miss a refund. Sign up for a free savings analysis and start seeing savings as early as your next invoice.

FedEx Network 2.0 - Where Things Stand Today

2025-07-08T00:00:00Z

It's been nearly three years since FedEx announced its plan for Network 2.0. At its inception, Network 2.0 would cost $2 billion to implement; however, within five years, it is anticipated to add $2 billion to FedEx's annual operating income. We're more than halfway to the 5-year mark. So, how's it going? Today, we'll take a look at what's been accomplished so far, what to expect in the coming two years, and how to protect your bottom line as FedEx ramps up its plan to close or consolidate facilities.

What's Happened Recently in the Network 2.0 Rollout?

In the June 24 Q4 2025 Earnings Call, Rajesh Subramaniam, President, CEO & Director, gave an update on the status of Network 2.0, saying, "As at the end of FY '25, we have closed 100 stations and integrated 290 stations under the Network 2.0 model. And we expect to, by the end of this program, expect to remove roughly 30% of our surface facilities."

FedEx has made major progress this year, including:

●       Full optimization of the Canadian market
●       Optimization of 45 US stations in Q4
●       Network 2.0 implementation on approximately 30 stations in 11 markets on June 1
●       Further optimization of 33 stations in 9 markets at the end of June

Subramaniam sums up the carrier's progress, saying, "we exit June with roughly 2.5 million average daily volume flowing through Network 2.0 optimized stations."

What's Next for Network 2.0?

According to FedEx's website, customers in the US and Canada will experience a new pricing and rating structure for parcel pickups beginning August 18, 2025. At that time, FedEx will charge regularly scheduled (Canada and US) and automated pickups (US) on a weekly basis, regardless of the service type. Customers using on-call parcel pickups will be charged on a per-stop basis (instead of per parcel). And for many customers, separating packages will become a thing of the past.

These changes are a response to customers' requests for a more seamless experience, while offering consistency, simplicity, and the ability to scale by supplementing regular pickups with on-call pickups.

Can I Expect the Same Quality?

John W. Dietrich, Executive VP & CFO of FedEx, says the company's goal is to "not only maintain but enhance our service." And he says they're on track: "We're seeing good progress on both the reliability side as well as the financial side for those locations we have transitioned."

The FedEx website states that customers won't experience service disruptions, but what happens if the closure of 100 stations and the increased flow through Network 2.0 stations result in delays? ShipRx parcel audits are a must-have for every business that relies on FedEx or UPS for parcel delivery.

Our proprietary software automatically performs more than 40 checks on every parcel shipped, and seamlessly requests refunds or credits for service failures. Sign up for a free Savings Analysis and get started with ShipRx parcel audits to see savings as early as your next invoice.

Ain't No Cure for the Summer Tariff Blues

2025-06-17T00:00:00Z

As a result of President Trump's desire to reshore U.S. manufacturing and increase revenues on imports, tariff rates hit their highest level in more than 100 years, increasing from 2.5% to an estimated 27%. Even businesses that didn't expect tariffs to impact them are feeling the pain of increased material costs, customs delays, administrative burdens, and shipping surprises.

Today, we're sharing a few tips on how to address tariff challenges and how you can offset your spending by saving on shipping.

4 Proactive Strategies To Reduce Tariff Troubles

Don't wait until you're overwhelmed by expenses and your products are stuck in customs to make a plan. Start now:

Re-evaluate Your Supply Chain: Are there alternative sourcing options available in countries with more favorable tariff agreements? Could nearshoring or even reshoring some production make sense in the long run? While these are significant decisions, the current tariff environment may be the push you need to build a more robust supply chain.
Understand Your True Shipping Costs: Tariffs add a layer of complexity to your shipping expenses. It's no longer just about the base rate. You need to factor in duties, customs fees, and potential delays when calculating the true cost of getting your product from point A to point B for accurate pricing and margin management. UPS Global Checkout's real-time updates provide a clear view of the guaranteed landed cost at checkout, including all duties, taxes, and fees.
Leverage Technology and Data: Utilize shipping analytics to identify your most impacted lanes, product categories, and even individual SKUs. Investing in logistics technology can help streamline compliance and provide greater visibility into your shipping spend.
Trust, but Verify: Now, more than ever, it's essential to double-check every line item while shipping and receiving. Parcel audits can ensure you're only paying for the services you use.

Surefire Savings in Questionable Times

We can't stop a trade war, but we can offer two paths for significant savings

Parcel Audits

A thorough parcel audit should meticulously review every line item to uncover:

● Billing Errors: Incorrect weights, duplicate charges, and misapplied surcharges are surprisingly common.

● Service Failures: Recover refunds when parcels aren't delivered as guaranteed.

● Unnecessary Fees: Identify and eliminate avoidable accessorial fees.

Recovering these overcharges can significantly offset the impact of rising tariff costs.

Parcel Rate Negotiation

Did you know you can renegotiate your shipping contract at any time? Engaging ShipRx for strategic parcel rate negotiations with FedEx and UPS can lead to substantial savings by:

●       Analyzing Your Shipping Profile: We evaluate your unique shipping patterns to give you leverage.
●       Benchmarking Rates: We're well-versed in industry standards to ensure you get a competitive deal.
●       Leveraging Volume: Shipping consistent volume may qualify you for better discounts.
●       Negotiating Surcharges: We don't just focus on base rates; many hidden costs lie in surcharges.

By negotiating your contracts proactively, ShipRx can help you secure better terms and lower your per-package shipping costs, offsetting rising rates due to tariffs.

Maybe there is a cure after all!

Ready to take control of your shipping costs? Explore how a comprehensive parcel audit and expert parcel rate negotiation with ShipRx can benefit your business today.

Shipping Smarter: DHL Becomes a Key Shopify Partner

2025-06-17T00:00:00Z

Did you hear that? Shopify sellers just let out a collective cheer. As of May 26, DHL is pre-integrated into the Shopify Shipping platform.

Today, we'll look at how DHL's Shopify integration will empower millions of online businesses, similar programs offered by FedEx, UPS, and USPS, and the next steps you should take to secure the best rates.

What Does This Mean for Shopify Sellers?

In a move designed to reduce time spent on administration and streamline operations, Shopify sellers can automatically benefit from shipping discounts and other services from DHL. Previously, e-commerce brands had to onboard their logistics provider independently.

With changes in tariffs and taxes for international shipping, Katja Busch, Chief Commercial Officer of DHL and Head of DHL Customer Solutions & Innovation, said, "We know that navigating customs clearance, duties and tax compliance, in addition to finding a dependable delivery partner, can be complex without expert assistance." In the DHL press release, she continues, "The partnership between DHL and Shopify allows merchants to tap into DHL's expertise and use our unrivaled network, products and services effortlessly. It's all geared to enabling merchants to deliver to their customers in a hassle-free manner." One of the benefits for Shopify merchants is the possibility to take advantage of Delivered Duty Paid (DDP) shipping. DDP handles all customs, duties, and taxes upfront, so customers aren't surprised with unexpected fees upon delivery.

As of now, the service is only available for e-commerce shops in the US and Germany, with plans to roll out the service to Europe, the Americas, and the Asia-Pacific region by the end of 2026.

Do Other Carriers Have Similar Relationships?

DHL isn't the only shipping brand with an e-commerce partnership. These mutually beneficial collaborations provide carriers with access to a vast pool of potential customers and offer merchants streamlined shipping solutions at a significantly lower price than if they shipped alone.

FedEx Compatible offers merchants the opportunity to browse software solutions tailored to their specific needs, providing customers with streamlined access to their shipping services, competitive rates, and enhanced shipping options. They also emphasize solutions for efficient returns management, understanding its critical role in customer satisfaction.

UPS Digital Connections gives you access to "funding, discounts and exclusive access to our digital partners and accelerate your business' growth." Essentially, this service connects sellers with e-commerce and marketplace vendors, giving small businesses access to Enterprise-level terms.

Even the Postal Service partners with digital platforms and marketplaces to offer sellers discounted rates and favorable terms through its USPS Connect eCommerce program.

Is One of These Partnerships Right For My Business?

Before you hitch your wagon to someone else's horse, consider contract negotiations to determine your eligibility for the most favorable shipping terms. ShipRx has decades of experience in the industry, helping small, medium, and large businesses negotiate their contracts with the major carriers.

Get in touch today for a free savings analysis and discover how much you can save on shipping— with or without the help of a shipping partnership.

Following the Leader Again - FedEx Matches UPS Rate Changes

2025-06-10T00:00:00Z

In the ever-evolving world of logistics, it's often a game of "follow the leader"— especially when it comes to shipping rates. Recently, FedEx has followed in the footsteps of its rival, UPS, by implementing its own set of increased charges. Understanding these adjustments is key to navigating the landscape of parcel delivery without breaking the bank.

Both FedEx and UPS kicked off 2025 with a general rate increase (GRI) averaging 5.9% across most of their services. Throughout the year, the carriers have added fees and surcharges to boost their bottom line, including UPS's June 2 updates. Not to be left behind, FedEx introduced three changes that took effect over the past two weeks. We'll discuss the new updates, which services are affected, and whether you can avoid the financial impact.

Late Payments Just Got More Expensive

As of June 1, the Late Payment Fee has increased by nearly 2%, from 8% to 9.9% of the total past-due balance. Consider this your reminder to set up automatic payments to avoid late fees.

The Delivery Area Surcharge ZIP Code List Gets a Makeover

Delivery Area Surcharges are nothing new. However, the June 2 update to the ZIP code list adds, moves, or removes hundreds of locations from the Contiguous US, Contiguous US Extended, and Contiguous US Remote lists.

The June 9 FedEx Surcharge

As of Monday, June 9, domestic package and express freight services FedEx Ground, FedEx Home Delivery, FedEx International Ground, FedEx International, and FedEx Freight are subject to a new fuel surcharge table.

For example, until June 1, 2025, FedEx Ground, Home Delivery, and International Ground Services were subject to a fuel surcharge rate of 17.75%. Now, with a US Energy Information Administration-reported on-highway diesel fuel price of $3.451 on June 2, the fuel surcharge will be 19.75%. The surcharge list begins at 19.5%, ensuring a boost to the carrier's bottom line this summer.

Why the Increases?

On the FedEx webpage explaining the latest fee updates, the carrier explained, "We regularly evaluate our shipping rates and fees and adjust them when needed. This enables us to keep investing in our business so we can continue delivering the shipping solutions you need and the excellent service you've come to expect from us."

These rate adjustments reflect the ongoing pressures of inflation, increased labor costs, and investment in infrastructure and technology. Additionally, carriers leverage surcharges to improve profitability, as these can have a disproportionately higher impact on overall shipping costs compared to the general rate increase.

What Can Shippers Do?

Mid-year fee changes may be the new normal, but that doesn't mean you should simply accept them.

A robust negotiation strategy is not just about saving money; it's about optimizing your entire shipping operation for long-term success. When businesses partner with ShipRx for FedEx contract negotiations, we often lower their rates by 20-30%. Are you leaving money on the table?

Following the leader is a game for the carriers. Contact ShipRx and chart your own money-saving path.

Is USPS' Priority Mail Next Day a True Alternative to UPS and FedEx Overnight Services?

2025-06-02T00:00:00Z

David Steiner, a member of FedEx's board of directors since 2009, has been selected as the 76th Postmaster General and CEO of the USPS. While he won't start until July, USPS is already shaking things up with a new Priority Mail Next Day service. Today, we're discussing the guidelines for the new service, who is eligible, and whether this low-cost alternative poses a threat to UPS and FedEx's similar services.

USPS Priority Next Day Service: Who is It for?

For businesses with a negotiated shipping agreement (NSA), Priority Mail Next Day means you can now get packages to customers and other businesses overnight if they're within 150 miles of USPS's 60 regional Processing and Distribution Centers throughout the US. As this service is only available to clients with an NSA, pricing is on a case-by-case basis, and clients must arrange transportation to the facilities with USPS in advance.

While the USPS is working to expand this service, stating it will reach 87% of the US population (about 295 million people) each day, Priority Next Day currently serves 3,000 ZIP codes for pickup and 6,300 for delivery.

On its website, you can discover where Priority Next Day is available and the reach from a specific location. For example, with pickup in Dallas, the service reaches 1,928,814 people and 91,539 businesses. If USPS collects the parcel from Los Angeles, the service reaches 5,071,750 people and 273,910 businesses.

Time to Say Goodbye to FedEx and UPS?

With short delivery times, low rates, and no surcharges for residential and rural deliveries, making the switch from the major carriers is tempting. But is it a good decision?

The USPS website says, "With Priority Mail® Next Day, the expected delivery date reflects a delivery time of 1 business day and is based on the specified origin, destination, and drop-off time in most cases. The expected delivery date does not come with a money-back guarantee."

These comparable services from UPS and FedEx are eligible for a money-back guarantee:

●       UPS 2 Day Air A.M.®
●       UPS Next Day Air®
●       UPS Next Day Air Saver®
●       UPS Next Day Air® Early
●       FedEx First Overnight®
●       FedEx Priority Overnight®
●       FedEx Standard Overnight®
●       FedEx 2Day® A.M.
●       FedEx First Overnight Extra Hours
●       FedEx Priority Overnight Extra Hours
●       FedEx Standard Overnight Extra Hours

Each year, more than $3 billion in shipping refunds go unclaimed. And those are parcels that are eligible for refunds. USPS argues that a lack of guarantee is what enables them to offer lower pricing.

Our recommendation? Stick with your carrier and sign up for ShipRx's automated parcel audits to ensure you don't miss out on any refunds you're owed. Our proprietary software checks over 40 different factors on every label you create.

ShipRx's free Savings Analysis gives you insights into how you can save money now, through contract negotiations, and in the long term, with parcel audits. Get in touch today and start seeing savings— even before David Steiner starts his new position!

After 2019 Breakup, Amazon and FedEx Rekindle Relationship

2025-05-20T00:00:00Z

UPS is moving full-steam ahead with its plan to decrease the volume of Amazon parcels it delivers by 50% by the second half of 2026. Despite Amazon's LTL ambitions and investments in a rural delivery network, the e-commerce giant needs help getting parcels to customers. Last week, FedEx and Amazon went public with a new relationship. Today, we'll look back at their previous business together, what this new contract entails, and what it means for your business.

A Short History of FedEx and Amazon's Prior Dealings

Six years ago, the competition between Amazon and FedEx caused a rift, resulting in the two ending their working relationship.

Before August 2019, Amazon contracted with FedEx for ground and express domestic shipments. By September of that year, FedEx had allowed both contracts to lapse. In FedEx's 2019 annual report, the company addressed competition, stating, "If customers, such as Amazon.com, further develop or expand internal capabilities for the services we provide, it will reduce our revenue and could negatively impact our financial condition and results of operations."

In 2019, Forbes reported that FedEx's decision to stop working with Amazon would allow it to partner with other major retailers. The article noted that, by 2026, the number of e-commerce parcels delivered each day was expected to increase from 50 million to 100 million. But those estimates were incorrect. According to the Capital One Shopping Package Delivery Statistics, 58,082,192 parcels were delivered daily in 2022.

Is FedEx the New UPS?

The new contract isn't a replacement for UPS. Instead, Amazon spokesperson Steve Kelly shared, "FedEx joins our other third-party partners, like UPS and the U.S. Postal Service, that work alongside our own last-mile delivery network to help us balance capacity to best serve customers." According to the e-commerce company, it now delivers two-thirds of its orders using in-house warehouses and delivery drivers.

What's in the New Contract?

While the new contract details are not public, an internal FedEx source obtained by Business Insider says, "We have reached a mutually beneficial, multi-year agreement to provide residential delivery of select large packages for Amazon." FedEx has the infrastructure to support heavy and bulky deliveries across the US.

How Will FedEx's New Relationship With Amazon Affect You?

Just six years ago, FedEx seemed concerned that "high volume package shippers are developing and implementing in-house delivery capabilities and utilizing independent contractors for deliveries, which could in turn reduce our revenues and market share." Those concerns led to a cooling between the two organizations. Now, they're working together again.

While we may never know exactly what prompted the change, weak demand likely led to FedEx's decision to work with Amazon again.

Now is an ideal time to negotiate or renegotiate a contract with FedEx.

Amazon and FedEx's rekindled relationship is a sign that FedEx is willing to accept work it once declined. There's no better time to find out how its current circumstances might work in your favor. Get started with a complimentary ShipRx Savings Analysis to find out how much you can save.

Amazon Goes Rural While FedEx and UPS Retreat

2025-05-13T00:00:00Z

Amazon Goes Rural While FedEx and UPS Retreat

In previous years, UPS and FedEx have moved to reduce service in rural areas. Flying in the face of traditional carrier logic, Amazon recently announced that it would invest $4 billion by 2026 to expand its rural delivery network significantly.

Why rural? Why now? And what does it all mean for you?

What Will a $4 Billion Investment Buy?

This substantial investment aims to triple Amazon's rural delivery footprint, adding over 200 new delivery stations and more than 100,000 jobs.

In its investment announcement, Amazon shared, "Once this expansion is complete, our network will be able to deliver over a billion more packages each year to customers living in over 13,000 zip codes spanning 1,200,000 square miles—an area the size of Alaska, California, and Texas combined." By building its own infrastructure, Amazon is taking greater control of the last mile in these regions, a critical step in meeting customer expectations for faster delivery.

Amazon Prime members love fast, free delivery, and Amazon's expanded rural infrastructure will give even more Prime members access to over 300 million items eligible for this perk.

What are UPS and FedEx Doing in Rural Areas?

This strategy stands in interesting contrast to some of the recent adjustments we've observed from established carriers like FedEx and UPS. While these giants have long served rural communities, the economics of delivering to fewer recipients spread across vast distances has led to strategies focused on optimizing efficiency, which sometimes translates to service modifications in rural areas.

In recent years, FedEx and UPS have explored and implemented changes to increase efficiency and manage costs in lower-density markets. For instance, just last September, UPS introduced its rural deferred program that, in some rural zip codes, adds an extra day in transit by consolidating deliveries. In 2022, FedEx scaled back its Sunday home deliveries in some outlying areas. Instead of delivering to 95% of the US market on Sundays, it would only deliver to 80%. These decisions are often driven by the need to make rural routes more economically viable, a stark difference from Amazon's significant capital injection aimed at expanding service in these very areas.

Why is Amazon Ramping Up Rural?

The difference in approach highlights the distinct priorities and business models at play. With its focus on e-commerce growth and customer Prime membership value, Amazon sees enhanced rural delivery as a key differentiator and a way to unlock further market potential. By building out its own network, Amazon can reduce its reliance on third-party carriers for the final mile in these challenging locations, gaining more control over the customer experience and lowering long-term per-package costs as volume increases.

No Matter Where You're Shipping, Parcel Audits Are a Necessity!

Don't let the complexities of carrier strategies and pricing eat into your bottom line—partner with ShipRx to automate parcel audits and unlock potential savings. No matter what the future holds for rural deliveries, ShipRx will always be here to help you secure savings.

Don't Get Comfy: UPS Rates Rising Again

2025-05-06T00:00:00Z

Less than two months ago, UPS announced a 50-point bump in its fuel surcharge and other fee increases. Its newest 2% payment processing fee hasn't even taken effect, but UPS just dropped a new set of rate updates, which will take effect June 2.

We'll help you understand the changes, how they may affect you, and what you can do to avoid or reduce them by partnering with ShipRx.

Zone Changes for Origin/ Destination ZIP Code Pairs

UPS occasionally changes its zones for specific zip code pairs (often those on the edge of a zone). While some of the past changes marked a decrease in rates, most shippers experienced an increase. The carrier made zone changes in April and October 2024 and will make another change on June 2. Charts detailing these changes will be available the day the change goes into effect.

Additional Fees

Zones 7 and above (a radius of 1,401 miles+) will experience additional handling and large package surcharges beginning June 2. These include:

●       Additional Handling Weight: $55.00
●       Additional Handling Dimensions (Length, Length + Girth, or Width): $38.00
●       Additional Handling Packaging/Other: $31.50
●       Commercial Large Package: $260.00
●       Residential Large Package: $305.00

UPS last updated these rates at the end of 2024, with a distinction for Zones 5+.

Remote Area Surcharge

Beginning June 2, Ground Saver packages within the Remote Area Zip Codes in the contiguous 48 states will be subject to a Remote Area Surcharge.

Shipping Charge Correction Audit Fee

When UPS discovers discrepancies between a parcel's declared and actual weight or dimensions, or there is an issue with the address, the carrier imposes a Shipping Charge Correction Audit Fee. The current fee is $1 per package or 6% of the entire shipping charge corrections that fall within the applicable invoice period— whichever is greater.

As of June 2, the fee will be the greater of $1.65 per package or 12% of the total shipping charge corrections during the applicable invoice period.

Over Maximum Limits

UPS has set size and dimension limits for packages it will transport. Packages can be up to:

●       150 pounds
●       165 inches in length and girth combined
●       108 inches in length

Packages with a large size-to-weight ratio require special pricing and dimensional weight calculations.

Until December 22, 2024, the Over Maximum Limits fee was $1,250. On December 23, 2024, it increased to $1,325. On June 2, it will go up again to $1,775. That's a 42% increase in less than 6 months.

Why the Increase + What You Can Do About It

UPS explained the rate increase, saying, "UPS rate updates help to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS."

Rates may be on the rise, but here's a little industry secret: they're not rising for everyone. Expert negotiations can help you avoid or reduce additional fees from the carriers. Trust ShipRx with your UPS contract negotiations and save on your shipping rates— even as they continue to rise.

Sign up for a free Savings Analysis and start saving as soon as your next invoice!