Every holiday season, parcel carriers introduce temporary peak surcharges that can quickly add up for shippers. A number of parcel carriers – national and regional – have announced their plans for the 2025 peak season, and the increases are significant. Understanding these changes and planning around them is critical for controlling parcel shipping costs during the busiest months of the year.

At Transportation Insight we help shippers forecast, model and manage the financial impact of peak surcharges across carriers. Here is what you need to know for the 2025 shipping season.

FedEx Peak Season Surcharges

Dynamic Volume Based Fees
FedEx ties its residential delivery surcharges to shipping volume compared with a June 2025 baseline. The higher the weekly spike above baseline the higher the surcharge. At peak fees can climb to $7.50 to $8.75 per package for Ground and Express shipments.

Timing
FedEx surcharges apply from October 7, 2025 through January 19, 2026 with calculations based on weekly volumes.

FedEx Demand Surcharges – 2025

  • Additional Handling: $6.95 per package most of the year, $9.75 per package during peak (Oct 7 – Jan 19)
  • Oversize Packages: $73.00 per package most of the year, $94.00 during peak
  • Ground Unauthorized (Over Maximum Limits): $455 per package most of the year, $520 during peak
  • Residential Delivery Volume-Based Surcharge: Applies when weekly residential volumes exceed the June 2025 baseline. Fees range from $1.35 to $8.75 per package depending on how far volumes exceed baseline.

Transportation Insight Perspective
FedEx creates two cost exposures. First, fixed penalties for oversize, additional handling and over-max shipments that escalate during peak. Second, variable penalties are tied to residential volume growth over baseline. A single surge week can significantly increase costs, making forecasting and planning critical.

UPS Peak Season Surcharges

UPS announced its 2025 Demand Surcharges on August 28, 2025 with fees running from September 28, 2025 through January 17, 2026. These surcharges affect oversize packages, residential services and high-volume shippers.

Additional Handling, Large Packages and Over Maximum

  • Additional Handling: $8.25 (early and late season), $10.80 (Nov 23 – Dec 27)
  • Large Package: $90.50 (early and late), $107.00 (Nov 23 – Dec 27)
  • Over Maximum: $485 (early and late), $540 (Nov 23 – Dec 27)

Residential and Air Services

  • UPS Ground Saver and Residential: $0.40 (early and late), $0.60 (Nov 23 – Dec 27)
  • UPS Next Day Air and Other Air: $1.10 (early and late), $2.05 (Nov 23 – Dec 27)

UPS applies its steepest fees between Black Friday and Christmas.

Higher Volume Shipper Surcharges
For shippers averaging 20,000 or more packages per week, UPS applies variable surcharges based on weekly volume compared to baseline.

Example for Oct 26 – Nov 22:

  • UPS Ground Residential: $0.40 at baseline rising to $7.50 if volumes exceed 400 percent of baseline
  • UPS Air Residential: $1.10 at baseline rising to $8.75 if volumes exceed 400 percent of baseline

Transportation Insight Perspective
UPS tiered structure creates significant cost risk for high volume shippers. 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.

USPS Holiday Surcharges

The U.S. Postal Service applies flat per package surcharges on Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select from October 5, 2025 through January 18, 2026.

Retail Example for Zones 5 to 9

  • 0 to 3 lbs: +$0.90
  • 4 to 10 lbs: +$1.45
  • 11 to 25 lbs: +$3.25
  • 26 to 70 lbs: +$7.00

Commercial Example for Zones 5 to 9

  • 0 to 3 lbs: +$0.70
  • 4 to 10 lbs: +$1.15
  • 11 to 25 lbs: +$2.75
  • 26 to 70 lbs: +$6.50

Transportation Insight Perspective
USPS flat surcharges are simpler to model than FedEx or UPS. However, heavier parcels and longer zones can become expensive quickly. We recommend leveraging commercial discounts, shifting lightweight parcels into USPS and monitoring shipment profiles to reduce costs.

OnTrac Demand Surcharges

OnTrac peak season surcharges will be in effect from September 27, 2025 through January 16, 2026.

  • Additional Handling: $11 per package for heavy, oversized or nonstandard packaging
  • Large Package Surcharge: $105 per package for large packages over 72 inches or large cubic size
  • Over Max Limits: $550 per package for items exceeding maximum dimensions or weight
  • Residential Delivery: $1 per package from Oct 25 through Jan 16, on top of the standard residential surcharge

Transportation Insight Perspective
Regional carriers such as OnTrac provide alternatives but their surcharges remain significant. Shippers should weigh these costs against national carrier exposure and consider where regional diversification can create advantages.

DHL

As of this update DHL has not yet released its 2025 peak season surcharge schedule. Shippers should continue to monitor carrier websites closely since additional updates are expected.

How Shippers Can Stay Ahead

  1. Model Costs Early – Use historical data to predict surcharge exposure before peak season begins
  2. Audit Packaging – Small changes in dimensions can mean the difference between a $10 surcharge and a $540 penalty
  3. Diversify Carriers – Shift volumes across multiple carriers to reduce reliance on one provider
  4. Leverage Data Visibility – Use parcel intelligence tools to monitor weekly baselines and avoid high surcharge tiers
  5. Negotiate Contracts – Push for surcharge caps and flexible provisions
  6. Stay Informed – Fees are updated frequently. Monitor carrier announcements to avoid surprises

Final Word

Peak season surcharges are no longer a small seasonal bump. They are now a major factor in parcel shipping cost management. Carrier pricing structures, oversize and high-volume penalties and flat charges all create risks for shippers.

At Transportation Insight we help shippers turn these surcharges into manageable predictable costs through forecasting, analytics and strategic carrier management. By acting now, you can ensure the 2025 holiday season strengthens your customer experience without overwhelming your bottom line.