UPS, FedEx Raise 2026 Holiday Shipping Surcharges

Liz Morton
Liz Morton


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UPS and FedEx have released holiday shipping surcharges for 2026, with basic residential Ground charges increasing roughly 23% to 25% from last year and some peak fees beginning in late September.

UPS published its updated Demand Surcharge schedule August 26, with additional fees for oversized and nonstandard packages beginning September 27 and broader residential Ground and Air surcharges starting October 25.

Ground Residential and Ground Saver will carry a $0.50 surcharge during the first and final holiday periods and $0.75 during the November 22 through December 26 peak, up from $0.40 and $0.60 last year.

FedEx announced its domestic holiday increases in July, with a similar schedule starting September 28 for nonstandard packages and October 26 for most residential shipments.

Ground Residential and Home Delivery will also start at $0.50, rising to $0.80 from November 23 through December 27 before dropping back to $0.50. Last year's charges were $0.40 and $0.65.

The USPS Board of Governors has established temporary peak-season increases for Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select, scheduled to take effect October 4 and remain in place until January 17, subject to Postal Regulatory Commission review

USPS Pushes Holiday Rates Higher With 8% Temporary Increase Still In Place
USPS wants to raise holiday shipping prices after an unusually turbulent year for package rates.

USPS has had an unusually active year for pricing as well, including a separate 8% transportation-related increase on Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select in April, followed by another Competitive Products rate change in July that included a lower dimensional weight divisor.

Marketplace and other commercial shippers won't necessarily pay the published carrier rates, since negotiated discounts and contract terms can change the final price. But higher shipping costs can still work their way through to sellers and buyers, whether they show up directly in shipping charges or are absorbed into product prices.

On marketplaces like eBay and Etsy, that can also increase selling fees when shipping is included in the amount used to calculate percentage-based transaction fees. On eBay, shipping is also included in reported Gross Merchandise Volume, meaning higher costs passed through to buyers can push GMV higher even if item prices and the number of items sold remain unchanged.

The holiday picture isn't completely settled yet. FedEx says it will make additional adjustments to U.S. international Demand Surcharges during the holiday season, with more details expected in early September.

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Liz Morton is founder and editor of Value Added Resource. She spent 17+ years operating ecommerce businesses before launching VAR. Her reporting focuses on seller experience, marketplace strategy and corporate accountability.


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