Just Released: UPS 2025 Peak Surcharges

As shippers prepare for the holiday rush, UPS has released its 2025 Peak Season Demand Surcharge schedule, in effect from September 28, 2025 through January 17, 2026. This year’s increases—ranging from 2% to 60% depending on service type and volume—will have widespread implications across budgets, operations, and network strategy.

Ground & Air Residential Surcharges

Residential and ground saver shipments are seeing some of the steepest percentage hikes. While the absolute dollar amounts may seem small, the cumulative impact across high-volume networks is significant.

Impact: Ground Saver/Ground Residential fees rise 20–60% YoY, while Air services climb 2–10% YoY. Even a $0.20–$0.40 increase per package can compound into six-figure cost swings for large-volume shippers.

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Additional Handling, Large Package & Over-Max Limits

Bulky and oversized shipments remain a target for sharper increases. These surcharges can dramatically change the landed cost of big-ticket items, making packaging optimization and SKU mix decisions more critical than ever.

Impact: Fees rise 6–9% YoY, with Large Package charges peaking at $107 per unit and Over-Max surcharges climbing to $540 during the busiest weeks.

High-Volume Thresholds

UPS is again applying penalties for shippers whose weekly volumes exceed 105% of their baseline, calculated against any week post-October 2024 where volumes topped 20,000 packages.

Impact: Once above the 105% cap, surcharges rise 2–10% YoY depending on the tier. For retailers banking on Q4 promotions to drive spikes in order volume, this surcharge structure could erode margins if left unmanaged.

What This Means for Shippers

• Holiday budgets will be tested. Even modest per-package increases can snowball across millions of shipments.
• Bulky items cost more than ever. Large/Over-Max fees will push shippers to revisit packaging specs and fulfillment models.
• High-volume tiers tighten risk. Promotions that drive order spikes could inadvertently trigger heavier penalties.
• Proactive scenario planning is essential. Carriers continue to use surcharge levers to shape shipper behavior—meaning it’s time to model, forecast, and plan with precision.

Smarter Peak Planning

Intelligent Audit’s Modeling Tools make it possible to:

• Forecast peak costs by service, package type, and volume tier.
• Run “what-if” scenarios to test promotions or SKU shifts against surcharge impacts.
• Diversify your carrier mix with data-backed insights to protect margins.

Connect with us today to see how Intelligent Audit can help you prepare for peak season 2025.