UPS and DHL Express are the latest parcel delivery providers to announce significant demand surcharges for the peak shipping season, putting added pressure on the freight transportation budgets of retailers and other businesses.
The new fees follow surcharges issued by FedEx and the U.S. Postal Service this summer.
UPS on Thursday said it will add fees for residential services, Next Day Air, oversize packages and high-volume shippers beginning Sept. 28 and continuing through Jan. 17. Shippers averaging more than 20,000 packages per week face variable surcharges based on their volume compared to a baseline level. Charges escalate as the holidays begin in late November. UPS Ground Saver and regular residential delivery will cost an additional 40 cents per package before and after high peak season and 60 cents between Nov. 23 and Dec. 27.
High-volume shippers risk incurring significant extra costs, according to a blog post by Robyn Meyer, senior vice president of parcel strategy and solutions at Transportation Insight. “Going 200 percent over baseline can triple or quadruple per package fees. We recommend auditing packaging to avoid oversize penalties, forecasting volumes with precision, spreading residential shipments across multiple carriers and negotiating contract language to limit surcharge exposure,” she wrote.
Transportation Insight helps companies optimize their parcel networks and reduce costs.
On Aug. 22, DHL Express issued a notice for surcharges to ensure operational reliability during the holiday season. The charge will mostly help cover the additional cost of securing air cargo capacity from third-party carriers to handle anticipated surges in volumes, a spokesperson said via email.
FedEx announced peak surcharges in June, effective Oct. 7 through Jan. 19. Like UPS, it ties residential delivery surcharges to shipping volumes compared to a June 2025 baseline. The higher the weekly jump above the baseline the higher the fee. At the height of peak season, fees can reach $7.50 to $8.75 per package. Additional handling will cost $9.75 compared to $6.75 the rest of the year. FedEx surcharges also apply for oversized packages and being over maximum limits.
“A single surge week can significantly increase costs, making forecasting and planning critical,” Meyer said.
The U.S. Postal Service in early August announced surge pricing for Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select products, as FreightWaves previously reported.
Fees vary by distance shipped and weight, as well as for retail and commercial customers. The average increase for Priority Mail is 4.1%, with an average surcharge of 5.1% for Ground Advantage. A USPS Ground Advantage package going long distance, for example, could cost between 35 cents to $5.50 extra. The temporary increases begin at midnight on Oct. 5 and remain in place through Jan. 18.
Myer said USPS flat surcharges are easier to plan for, but heavier parcels and transport across longer zones can quickly increase costs. She recommended shippers leverage commercial discounts, shift lightweight parcels to the Postal Service and monitor shipment profiles to reduce costs.
Regional carriers also have sizable surcharges of their own.
OnTrac, which reaches about 70% of the U.S. population, said its peak season surcharges will be in effect Sept. 27 through Jan. 16. Residential delivery starting on Oct. 25 will incur an extra fee of $1.
The courier will charge $11 for additional handling of heavy, oversized or nonstandard packages, a large package fee of $105 and $550 per package for items exceeding maximum dimensions or weight.
Regional carriers that have indicated they don’t plan to issue surcharges include Lone Star Overnight, CDL Last Mile Solutions, Jitsu, UniUni, Spee Dee, Deliver Direct and The Frontdoor Collective.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at [email protected].
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