UPS and FedEx Peak Surcharges Rise Nov. 22: What Brands Will Pay

Costs & Pricing

11-09-2026

The most expensive weeks of the 2026 holiday shipping season start in less than two weeks. UPS moves its residential demand surcharge for Ground Residential and Ground Saver from $0.50 to $0.75 per package on November 22, and FedEx raises its Ground Residential and Home Delivery Residential demand surcharge from $0.50 to $0.80 on November 23. The UPS peak tier ends December 26 and the FedEx peak tier ends December 27; both then drop back to $0.50 until mid-January 2027. If you ship residential parcels, every order you send in that window will carry the higher fee on top of base rates and fuel.

What Are Carrier Demand Surcharges?

Demand surcharges (often called peak surcharges) are temporary per-package fees UPS and FedEx add during high-volume periods. They are separate from the annual general rate increase and from fuel surcharges. For the 2026 season, both carriers split the fees into three tiers: an early tier, a peak tier around Thanksgiving through Christmas, and a late tier into January. Fees for oversized and hard-to-handle packages started first, in late September. Residential fees started in late October.

How Much Are the UPS 2026 Peak Surcharges?

UPS published its schedule on August 26, 2026. The key figures for ecommerce shippers:

Ground Residential and Ground Saver: $0.50 per package in the early and late periods, $0.75 during the November 22 to December 26 peak. Last year the same fees were $0.40 and $0.60.
Demand surcharge across Ground Residential, Air and Ground Saver: $0.50 to $2.50 per package, October 25, 2026 to January 16, 2027, depending on service and period.
Additional Handling: $8.75 to $11.90 per package, September 27, 2026 to January 16, 2027.
Large Package: $96.25 to $117.50 per package over the same dates.
Over Maximum Limits: $530 to $590 per package over the same dates.

UPS also has a separate schedule for its biggest shippers. Customers billed for more than 20,000 packages in any week after October 2025 pay a demand surcharge of $0.50 to $9.35 per package instead, based on how far their volume rises above their own baseline.

How Much Are the FedEx 2026 Peak Surcharges?

FedEx's official demand surcharge page lists three tiers for U.S. domestic shipments. Residential and Express fees run October 26 to November 22, then November 23 to December 27, then December 28, 2026 to January 17, 2027:

Ground Residential and Home Delivery Residential: $0.50, then $0.80, then $0.50 (up from $0.40 and $0.65 last year).
Ground Economy (contract-only): $2.55, then $4.05, then $2.55.
2Day A.M., 2Day and Express Saver: $1.20, then $2.35, then $1.20.
First, Priority and Standard Overnight: $1.30, then $2.55, then $1.30.

Package-size fees started September 28 and follow the same peak split at November 23:

Additional Handling: $8.80, then $11.85, then $8.80.
Oversize: $95.75, then $117.25, then $95.75.
Unauthorized package: $535, then $595, then $535.

FedEx also charges a weekly Residential Delivery demand charge to enterprise shippers sending more than 20,000 residential and Ground Economy packages in a week. It ranges from $1.70 to $8.00 per Ground package depending on how far volume exceeds that shipper's June 2026 average, and contracted discounts on the regular residential fee do not apply to it. Most small and mid-size brands will not hit that threshold, but it shows how hard the carriers are pricing peak capacity.

How Much Will Peak Surcharges Add to My Shipping Costs?

For a typical small-parcel brand, the residential fee is the one that adds up. A few examples using published list rates:

A brand shipping 3,000 FedEx Home Delivery orders during the November 23 to December 27 peak pays $2,400 in demand surcharges, compared with $1,500 if the same orders shipped in the early tier.
The same 3,000 orders on UPS Ground Residential during its peak would carry $2,250 in demand surcharges.
One oversized or heavy item that triggers Additional Handling adds roughly $12 per box at peak, which can wipe out the margin on a lower-priced product.

These are list prices. Shippers with negotiated contracts may pay less, and fuel surcharges apply separately. Industry trackers note that while the cents-per-package increases look small, they are roughly 23% to 25% higher than 2025 for basic residential fees, which stacks on top of this year's rate increases.

What Can Ecommerce Brands Do Before November 22?

Ship gift inventory early. Run early Black Friday promotions and push pre-orders out before the peak tier starts. Orders that leave the warehouse on November 21 pay the lower fee.
Audit box sizes. Additional Handling and Oversize fees are triggered by dimensions and weight. Shaving an inch off a carton can keep a package out of a $12 fee.
Use USPS where it fits. Lightweight residential orders may cost less with USPS, though the Postal Service has its own temporary peak-season pricing this year.
Adjust free-shipping thresholds. Raising a threshold by a few dollars for the peak weeks can absorb most of the surcharge.
Check your invoices. Peak weeks are when billing errors and incorrect surcharges are most likely. Review residential and handling charges weekly.

Shipping from a warehouse close to your customers also cuts transit days, which matters when carriers are stretched. For West Coast buyers, a Southern California DTC fulfillment partner can keep more orders in fast ground zones.

Frequently Asked Questions

When do UPS and FedEx peak surcharges end?

The highest tier ends December 26 for UPS and December 27 for FedEx. Lower demand surcharges continue until January 16, 2027 for UPS and January 17, 2027 for FedEx.

Do peak surcharges apply to every package?

No. The residential demand surcharge applies to residential deliveries on the listed services. Additional Handling, Oversize and Large Package fees apply only to packages that meet those size or weight rules. FedEx One Rate is excluded from the Express demand surcharges.

Can carriers change these surcharges during the season?

Yes. FedEx says it can reassess or reinstate demand surcharges at its discretion and will adjust international demand surcharges during the season. Check the carrier pages before planning promotions.

Are peak surcharges the same as the 2027 rate increase?

No. Demand surcharges are temporary holiday fees. The annual general rate increase takes effect in January and changes base rates for the full year.

How 3PL City Helps

3PL City runs a Los Angeles warehouse in Gardena, CA, about 10 miles from the Ports of Los Angeles and Long Beach. Orders placed by 2 PM Pacific ship the same day, so gift orders go out before cutoffs. We maintain 99.8% order accuracy, offer discounted carrier rates, and give every client a dedicated account manager who responds within 1 hour during business hours. Onboarding takes 24 hours, with no long-term contracts, no order minimums and a $0 setup fee. We connect with Shopify, Amazon, Walmart, TikTok Shop, WooCommerce, BigCommerce and more. Ready to plan your peak? Get a fulfillment quote.