FedEx and UPS Demand Surcharges Raise Peak Shipping Costs for Ecommerce Sellers

FedEx and UPS have published their 2026 holiday demand surcharge schedules, adding temporary per-package charges across several US shipping services as carriers prepare for higher seasonal volumes.

The announcements add another shipping cost consideration for ecommerce sellers heading into peak season. They follow a proposed temporary rate increase from the United States Postal Service (USPS), which we covered in USPS Plans 2026 Holiday Price Increases: What Ecommerce Sellers Should Know.

FedEx will begin applying demand surcharges for additional handling, oversized packages, and unauthorized packages on September 28, 2026. From September 28 through November 22, the additional handling demand surcharge will be $8.80 per package, while the oversize demand charge will be $95.75. These increase to $11.85 and $117.25, respectively, from November 23 through December 27.

FedEx will also introduce service-level surcharges beginning October 26. FedEx Ground Residential and FedEx Home Delivery shipments will carry an additional $0.50 per package through November 22, rising to $0.80 through December 27. FedEx Ground Economy will rise from $2.55 to $4.05 per package, while selected overnight services will increase from $1.30 to $2.55.

UPS will begin certain demand surcharges on September 27. Additional handling will initially cost $8.75 per package, while the large package surcharge will be $96.25. From November 22 through December 26, those charges rise to $11.90 and $117.50, respectively. Packages exceeding UPS maximum limits will carry a $530 surcharge initially, increasing to $590 during the highest-demand period.

UPS will introduce additional service-level surcharges from October 25. UPS Ground Residential and UPS Ground Saver shipments will carry a $0.50 surcharge initially, increasing to $0.75. Selected UPS Air services will rise from $1.35 to $2.50 per package.

For ecommerce sellers, the impact will depend on carrier mix, package size, service level, and order volume. Businesses shipping oversized products, expedited orders, or large volumes may face the greatest cost increases during the busiest weeks of the holiday season.

Sellers can prepare by reviewing historical shipment data, checking package dimensions, forecasting peak order volume, and comparing services across multiple carriers. Multicarrier shipping software can also help teams identify lower-cost options while maintaining required delivery times.

Want more control over shipping costs as carrier surcharges change? Book a Descartes demo to see how our ecommerce solutions can help you compare carrier rates, automate shipping decisions, and manage fulfillment costs during peak season.