2025 peak season carrier surcharges | UPS, USPS, FedEx & more

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Updated on Nov 12, 2025

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Each holiday season brings a predictable rise in parcel volume, and with it, temporary peak season surcharges. These demand-based fees help carriers maintain reliable service during their busiest months by offsetting higher operating costs, added labor, and network strain.

For shippers, understanding how and when these surcharges apply is key to keeping costs predictable and fulfillment smooth. The good news is that with careful planning, data visibility, and the right automation, you can absorb seasonal adjustments without disrupting delivery promises or profitability.

This 2025/26 guide explains what’s changing across major carriers, when surcharges take effect, and how to prepare your shipping strategy ahead of the peak season rush.

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What is a peak season shipping surcharge?

A peak season surcharge (sometimes called a demand surcharge or holiday shipping surcharge) is a temporary fee that carriers apply during periods of exceptionally high demand, usually from early October through mid-January.

These fees help carriers manage network capacity, secure seasonal labor, and maintain service levels despite record package volumes. They’re not new, but the structure and timing often shift year to year.

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2025 peak season surcharges by carrier

FedEx peak season surcharges

Fee Type	Most of Year	Peak (Oct 7–Jan 19)	Notes
Additional Handling	$6.95	$9.75	Applies to heavy, irregular, or nonstandard packages
Oversize Packages	$73.00	$94.00	For shipments exceeding size limits
Ground Unauthorized (Over Max Limits)	$455	$520	Significant cost for noncompliant parcels
Residential Delivery (Volume-Based)	Variable	$1.35–$8.75	Based on volume above June 2025 baseline

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#ShipTip: FedEx combines fixed penalties (oversize, additional handling) with variable volume-based fees. Even one high-volume week can trigger surcharges. Forecast closely and plan for spikes.

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UPS peak season surcharges

Fee Type	Early/Late Season	Peak (Nov 23–Dec 27)	Notes
Additional Handling	$8.25	$10.80	Applies to weight, size, or packaging exceptions
Large Package	$90.50	$107.00	For shipments exceeding 96" length or 130" girth
Over Maximum	$485	$540	For noncompliant packages
Ground Saver & Residential	$0.40	$0.60	Applies to UPS residential services
Next Day Air & Other Air	$1.10	$2.05	Increases for expedited services
High-Volume (20,000+ pkgs/week)	$0.40 → up to $7.50	$1.10 → up to $8.75	Tiered by volume vs. baseline (up to 400%)

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#ShipTip: UPS’s tiered structure hits hardest between Black Friday and Christmas. Diversifying carriers and smoothing weekly volumes can help reduce exposure.

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USPS holiday surcharges

Weight (lbs)	Retail (Zones 5–9)	Commercial (Zones 5–9)
0–3	+$0.90	+$0.70
4–10	+$1.45	+$1.15
11–25	+$3.25	+$2.75
26–70	+$7.00	+$6.50

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#ShipTip: USPS surcharges are flat and predictable, making them easier to model, but long-distance or heavy packages still add up. Lean on USPS for lighter parcels to keep costs low.

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OnTrac demand surcharges

Fee Type	Surcharge	Notes
Additional Handling	$11 per package	Heavy, oversized, or nonstandard packaging
Large Package	$105 per package	For packages exceeding 72" or large cubic size
Over Max Limits	$550 per package	Exceeds max weight or dimensions
Residential Delivery	+$1 (Oct 25–Jan 16)	Added to standard residential surcharge

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#ShipTip: OnTrac offers regional flexibility, especially in the western U.S., but surcharges still apply. Compare total landed costs before shifting volume.

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DHL

Service Type	Weight Range	Surcharge (per package)
Parcel Ground & Expedited	All weights	$0.62–$0.67
Parcel Plus (Ground & Expedited)	0–25 lbs	$0.62–$1.57
Parcel Expedited Max	0–25 lbs	$0.62–$1.07
Return & International Products	All weights	$0.30–$6.50

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#ShipTip: DHL’s peak surcharges are relatively moderate but widespread, applying across domestic, return, and international services. Watch cumulative costs if you ship across multiple zones or return channels.

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When do peak season surcharges matter most?

Peak surcharges tend to ramp gradually, starting in early October, peaking between Black Friday and Christmas, and tapering off in mid-January.

Most cost impact comes from:

Residential deliveries during promotional spikes.
Oversize or Additional Handling packages.
Weeks when order volume exceeds baseline averages.

Knowing these pressure points early allows shippers to model different scenarios and avoid surprises when invoices arrive in January.

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How to plan ahead and offset costs

1. Use Real-Time Rate Shopping

Compare multiple carrier options per order—with surcharges included. Even small differences in service level or zone can reduce per-shipment costs without impacting delivery time.

2. Right-Size Packaging

Use cartonization and packing automation to reduce oversize and non-machinable shipments that trigger “additional handling” fees.

3. Smoothen Your Weekly Volume

Instead of releasing all holiday orders in one wave, stagger fulfillment where possible. Keeping weekly volumes consistent helps avoid higher-tier surcharges tied to baseline comparisons.

4. Diversify by Region

Leverage regional carriers for short-zone shipments. These providers often maintain faster transit times and lower surcharges within their service areas.

5. Optimize Returns

Don’t forget that return shipments can carry demand surcharges too. Predefine routing logic that selects the most cost-effective carrier for returns without sacrificing visibility.

6. Revisit Contract Terms

Some enterprise accounts qualify for surcharge caps or limited exemptions. Review agreements early in the season so you can route volume accordingly.

7. Improve Forecast Accuracy

Pull prior-year shipment data for October–January, then overlay current surcharge schedules. Model 10–20% growth scenarios to anticipate thresholds that could trigger new fees.

8. Empower Customer Communication

Transparent delivery timelines and branded tracking experiences reduce “where is my order” tickets and prevent costly reships and last-minute expedited upgrades.

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Carrier partnerships and predictability

It’s important to view these surcharges not as penalties, but as part of maintaining network reliability during record demand. Carriers invest heavily each season by adding staff, expanding facilities, and prioritizing on-time delivery to support merchants’ busiest weeks.

By pairing carrier data with tools that improve routing and packaging efficiency, shippers can create a more balanced and predictable peak season for everyone involved.

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Key takeaways

Expect surcharges from late September through mid-January, with peak rates between Thanksgiving and Christmas.
Monitor volume thresholds to avoid higher-tier adders.
Use data and automation to right-size packaging, route efficiently, and smooth order flow.
Collaborate with carriers—proactive planning and forecasting go further than reactionary cost-cutting.

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Plan your peak season with confidence

Seasonal surcharges will always be part of the shipping landscape, but how you prepare determines their impact. With the right technology, visibility, and carrier strategy, you can stay ahead of cost changes while keeping service levels high.

If you’d like to see how ShipWise can help you model carrier rates, automate packaging, and streamline routing during peak season, our team can walk you through a quick demo built around your shipment data.