Updated August 13, 2026.
Peak season hasn’t started yet, but higher shipping costs have.
Brands preparing their omnichannel fulfillment for Black Friday, Cyber Monday, and the holiday rush are already facing 2026 peak season surcharges, adding to a parcel market that is already more expensive because of fuel, carrier pricing changes, and tighter transportation capacity. As BFCM approaches, this year is shaping up to be different from the past several peak seasons.
2025 recap
In 2025, the primary concern was how much additional cost carriers would layer onto packages during the busiest weeks of the year. In 2026, brands also must account for elevated costs that began months before the holiday shipping window.
The TD Cowen/AFS Freight Index1 found that the ground parcel rate per package reached a record 42.4% above its January 2018 baseline in Q2 2026, up 6.9% year over year. Average net fuel surcharges per package jumped 40% year over year during the quarter.
That changes the math. Peak season surcharges are being added to fuel fees, residential charges, dimensional pricing, and other accessorials that are already putting pressure on cost per order.
Understanding when these charges apply, how they differ from 2025, and which announcements are still pending can help brands plan shipping budgets before holiday volume ramps up.
What are peak season surcharges?
Peak season surcharges are temporary fees carriers assess during periods when package volumes, network utilization, or operating costs are elevated.
Carriers frequently use the term “demand surcharge,” since these charges can apply whenever network conditions warrant them, rather than only during the traditional holiday peak. FedEx, for example, bases demand surcharges on shipment volume, capacity, and operating costs.
During the holidays, these fees can apply to ordinary residential shipments as well as packages that require additional handling, exceed certain dimensions, or fall into high-volume shipper tiers.
They also do not necessarily replace existing surcharges. A package can be subject to a peak or demand fee while also carrying a fuel surcharge, residential delivery charge, dimensional weight adjustment, or additional handling fee.
The stacking effect is important in 2026 as it affects an already volatile market.
What’s different about 2026 peak season surcharges?
Last year, peak fees themselves were the primary story. This year, the cost environment surrounding them matters almost as much as the published holiday rates.
Here is how the 2026 season is taking shape compared with 2025:
| Area | 2025 peak season | 2026 peak season so far |
| FedEx Ground Residential | Peak demand fee reached $0.65 per package | Peaks at $0.80,2 a 23% increase |
| FedEx Ground Economy | Peaked at $3.55 | Peaks at $4.05,2 about 14% higher |
| FedEx Express | One primary surcharge structure covered multiple expedited services | Overnight and 2Day/Express Saver services now have separate rates |
| Fuel | Elevated, but less central to the peak story | Fuel fees were already significantly higher before peak. Net parcel fuel surcharge per package rose 40% YoY in Q21 |
| USPS | Separate holiday commercial price table | An 8% temporary transportation-related increase3 has already been in effect since April; no additional holiday table has been announced as of Aug. 11 |
| Amazon FBA | Holiday fulfillment fees averaged about $0.32 more per unit | Average holiday increase remains about $0.32, but a new 3.5% fuel and logistics surcharge also applies4 |
| Rail/intermodal | Not covered in the previous Kase article | Union Pacific introduced a peak surcharge for certain low-volume intermodal shippers months before parcel peak5 |
| UPS | Peak schedule announced Aug. 28, 20256 | 2026 holiday demand schedule is still pending as of Aug. 11 |
In other words, many of the surcharge structures remain familiar, but the starting point is more expensive.
FedEx peak surcharges for 2026
FedEx was the first major national parcel carrier to publish a complete 2026 holiday demand surcharge schedule, releasing its update on July 22.2 Most of its fixed peak season surcharges are higher than last year, with the largest percentage increase hitting ordinary Ground Residential and Home Delivery packages.
FedEx 2026 holiday fees
| Surcharge | Sept. 28-Nov. 22, 2026 | Nov. 23-Dec. 27, 2026 | Dec. 28, 2026-Jan. 17, 2027 |
| Additional Handling | $8.80 | $11.85 | $8.80 |
| Oversize Charge | $95.75 | $117.25 | $95.75 |
| Ground Unauthorized Package | $535 | $595 | $535 |
Additional demand surcharges begin Oct. 26:
| Service | Oct. 26-Nov. 22 | Nov. 23-Dec. 27 | Dec. 28-Jan. 17 |
| First Overnight, Priority Overnight, Standard Overnight | $1.30 | $2.55 | $1.30 |
| 2Day A.M., 2Day, Express Saver | $1.20 | $2.35 | $1.20 |
| Ground Residential/Home Delivery Residential | $0.50 | $0.80 | $0.50 |
| Ground Economy | $2.55 | $4.05 | $2.55 |
Source: FedEx.
Compared with 2025, the peak Ground Residential fee rises from $0.65 to $0.80, or roughly 23%. Ground Economy increases from $3.55 to $4.05. Peak Additional Handling rises from $10.90 to $11.85, Oversize moves from $108.50 to $117.25, and the Ground Unauthorized Package fee increases from $545 to $595.
FedEx also changed the way its Express surcharge is structured. Last year, the same demand fee generally applied across several expedited services. This year, Overnight services have one rate while 2Day and Express Saver have another.
High-volume FedEx shippers face another layer
Enterprise-level customers shipping more than 20,000 residential and Ground Economy packages during a calculation week can also face FedEx’s Demand Residential Delivery Charge.
For 2026, FedEx compares a customer’s calculation-week volume with its average weekly residential and Ground Economy volume from June 1 through June 28, 2026. Depending on how far holiday volume exceeds that baseline, the additional Ground/Home Delivery fee can reach $8 per package, while Express services can reach $9.35 per package.
That baseline period has already passed, which means brands can begin modeling their likely surcharge tiers now rather than waiting until November.
UPS peak surcharges for 2026
UPS has not yet published its complete 2026 U.S. holiday demand surcharge schedule as of August 11, 2026.
Last year, UPS released its updated schedule on August 28, 2025, with surcharges beginning September 28. That makes late August or early September the most reasonable window to watch this year, although brands should not assume the 2025 rates or structure will repeat.
UPS has already made other 2026 surcharge changes. Its domestic Ground and Ground Saver fuel surcharge was updated again effective August 10, and UPS continues to adjust the percentage weekly based on national diesel prices.7
UPS 2026 holiday fees
| Surcharge | 2026 amount | Effective dates |
| Additional Handling | Pending UPS announcement | Pending |
| Large Package | Pending UPS announcement | Pending |
| Over Maximum Limits | Pending UPS announcement | Pending |
| Ground Residential / Ground Saver Demand Surcharge | Pending UPS announcement | Pending |
| Higher-Volume Shipper Demand Surcharge | Pending UPS announcement | Pending |
Editor’s note: Kase will update this table as soon as UPS publishes its official 2026 holiday surcharge schedule.
USPS holiday shipping costs for 2026
USPS is the biggest departure from last year’s surcharge pattern.
In 2025, USPS announced a separate holiday price increase on August 8, with higher commercial and retail rates applying from October 5 through January 18.
This year, USPS acted much earlier. An 8% temporary transportation-related increase took effect April 26, 2026, and remains in place through January 17, 2027.3 It applies to retail and commercial Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select. USPS cited rising transportation and fuel costs when it introduced the change.
That means the increase already covers the full holiday season.
USPS 2026 pricing currently in effect
| Change | Services affected | Effective dates |
| 8% temporary transportation-related price increase | Priority Mail Express, Priority Mail, USPS Ground Advantage, Parcel Select | April 26, 2026-Jan. 17, 2027 |
| Additional holiday-specific surcharge | Not announced as of Aug. 11, 2026 | Pending, if applicable |
Editor’s note: USPS announced its 2025 holiday adjustment by this point last year. As of August 11, 2026, Kase has not identified an additional 2026 holiday-specific commercial surcharge schedule on top of the existing 8% temporary increase. This section will be updated if USPS publishes one.
There is another change brands should account for even though it is not technically a peak surcharge. Effective July 12, USPS lowered its dimensional-weight divisor from 166 to 139, bringing its calculation closer to the approach typically used by FedEx and UPS.8 That can increase billable weight for lightweight, bulky ecommerce shipments.
For some Ground Advantage Commercial shipments, July pricing changes also increased costs by as much as $2.04 depending on weight and zone.
Amazon holiday fulfillment fees for 2026
Brands should distinguish between Amazon fulfillment fees and Amazon Shipping parcel surcharges. They are separate programs.
Amazon has announced its 2026 holiday peak fulfillment fees4 for Fulfillment by Amazon, Remote Fulfillment with FBA, Multi-Channel Fulfillment, and Buy with Prime. The peak period runs from October 15, 2026, through January 14, 2027.
The average increase is $0.32 per unit, the same average increase as last year.
What makes 2026 more expensive is the 3.5% fuel and logistics-related surcharge9 Amazon introduced in April. That surcharge will remain in effect during peak and applies on top of the holiday fulfillment fee.
For example, Amazon lists a large-standard T-shirt fulfillment fee of $6.14 outside peak and $6.53 during peak,10 before accounting for the additional fuel and logistics surcharge.
Amazon is also advising sellers to get inventory into its fulfillment network by October. The company has warned that fulfillment centers may have lower inbound capacity limits during November and December as operations shift toward processing customer orders.
What about Amazon Shipping?
Amazon Shipping, the parcel carrier that competes directly with FedEx, UPS, USPS, and regional providers, has not published a 2026 peak surcharge schedule that Kase can verify as of August 11.
Amazon Shipping’s rate information continues to state that it uses peak surcharges to support operations during periods of high demand, but its publicly available peak announcement currently covers the 2025 season.
| Amazon program | 2026 status |
| FBA / Remote Fulfillment / MCF / Buy with Prime | Announced. Holiday fees apply Oct. 15-Jan. 14, plus the 3.5% fuel and logistics surcharge |
| Amazon Shipping parcel peak surcharge | 2026 schedule pending |
This section will be updated when Amazon Shipping publishes its 2026 parcel surcharge rates.
Peak season costs are reaching further upstream
Parcel delivery is only one place brands may encounter peak-related transportation costs this year.
Union Pacific imposed a peak season surcharge on certain low-volume domestic intermodal shippers in Southern California beginning June 21,5 months before parcel carriers enter their traditional holiday surcharge periods. Reporting on the change described a $500-per-container charge for customers generally moving fewer than five loads per week using UP-owned EMP and UMAX equipment.
The timing matters for brands importing inventory through West Coast ports. A rail or intermodal surcharge affects the cost of moving inbound inventory toward a fulfillment center before the final parcel shipment ever begins.
Container import patterns are also unusual this year. U.S. importers pulled significant volume forward earlier in 2026 in response to tariffs and rising transportation costs, with Reuters reporting in early August that the early import surge was beginning to recede even as fuel and canal-related costs remained elevated.
Brands that manage international freight, drayage, rail, and parcel separately should look at total landed and fulfillment cost rather than budgeting for parcel peak surcharges in isolation.
Other carriers brands should watch
Carrier diversification can help limit exposure to one surcharge structure, but alternative carriers are facing the same fuel environment.
OnTrac, for example, is assessing a 24% fuel surcharge for the week of August 10-16, 2026.11 Its fuel fee applies to the net package rate plus applicable additional fees and surcharges.
| Carrier | 2026 holiday surcharge status as of Aug. 11 |
| OnTrac | Peak schedule not yet identified; current fuel surcharge is 24% |
| DHL eCommerce | 2026 U.S. holiday peak schedule not yet identified |
| UPS | Holiday demand schedule pending |
| Amazon Shipping | Holiday parcel schedule pending |
| USPS | 8% temporary increase already active; additional holiday-specific table not announced |
Brands using these carriers should check contracted rate cards as announcements arrive because public list pricing may not reflect negotiated terms.
How peak season surcharges can stack
One of the easiest mistakes in holiday shipping forecasts is modeling one surcharge at a time.
A FedEx residential shipment, for example, may be subject to a base transportation charge, the ordinary Residential Delivery Charge, the holiday Ground Residential Demand Surcharge, and a fuel surcharge. A high-volume shipper may also face the separate Demand Residential Delivery Charge. If the package triggers dimensional or handling criteria, additional charges can apply as well. FedEx explicitly states that its high-volume Demand Residential Delivery Charge is assessed in addition to its ordinary Residential Delivery Charge.
The question is therefore not simply, “What is the peak surcharge?” It is, “What will this package actually cost to ship during this specific week?”
That is the number brands should use when evaluating free shipping, promotional pricing, and holiday margin.
Reduce 2026 peak season fees with these strategies
While it can feel like every peak season surcharge is burning a hole in a brand’s wallet, practical strategies exist to offset fees. Consider the tips below to maintain a healthy holiday shipping season.
Keep your DIM weight down
Have you ever received a box within a box? Shipping fees take many forms, but dimensional weight is most certainly one of them. DIM weight is a primary way shipping carriers determine costs, taking both package weight and dimensions into account.
Merchants who utilize smaller boxes or mailer envelopes to reduce packaging dimensions can lower costs on each shipment and reduce the likelihood of additional handling fees.
Packaging deserves additional attention this year because USPS lowered its dimensional-weight divisor to 139 in July, making light but bulky parcels more expensive under certain services.
Incentivize early holiday shopping
The easiest way to avoid the highest peak season surcharges is to encourage customers to shop before they hit. Easier said than done!
Try incentivizing earlier purchasing through early-bird discounts or promotions. Early shipments can avoid the highest surcharges that apply during peak demand weeks, helping reduce costs while supporting timely delivery.
For FedEx, the most expensive fixed-fee period runs from November 23 through December 27 this year.
Compare rates among multiple carriers
Sticking with one carrier throughout the holiday season means a brand is tied to that carrier’s particular surcharge structure. Instead, compare rates among UPS, FedEx, USPS, Amazon Shipping, and regional carriers to determine which option makes the most sense for each package and destination.
Rate-shopping technology can make this easier by comparing carrier selection, transit time, cost, and delivery requirements at the package level.
This is useful in 2026 because fuel, residential, peak, and handling fees vary considerably by carrier. The lowest published base rate may not produce the lowest final transportation cost.
Consider multi-node fulfillment
For brands with a nationwide customer base and high order volume, a multi-node fulfillment approach can position inventory closer to customers.
Shorter delivery distances can reduce zone-related costs and exposure to extended or remote-area delivery charges while improving transit times.
It can also give brands more carrier options by origin, rather than forcing every holiday order through the same node and carrier mix.
Determine your free shipping threshold
Every shipment counts when a brand is footing the shipping bill. Setting free shipping thresholds can increase average order value and help offset higher shipping costs. It can also encourage customers to consolidate purchases into fewer orders.
A free shipping threshold works best when brands determine a level that supports both conversion and margin. A threshold that is too high could turn customers away, while one that is too low may leave the brand absorbing too much of the transportation cost.
For 2026 planning, brands should calculate the threshold using expected holiday cost per order, including applicable peak and fuel surcharges, rather than an annual average shipping rate.
Explore omnichannel strategies
Retailers may also be able to reduce parcel delivery costs through options such as buy online, pick up in store. BOPIS removes the residential last-mile shipment from the transaction while giving customers another way to receive holiday purchases.
For ecommerce merchants without their own stores, retail partnerships and other pickup options can provide similar flexibility.
Model the full surcharge stack
This year, modeling only the published peak surcharge will underestimate transportation costs. Brands should calculate expected cost by package type, service, week, destination, and carrier, including fuel, residential, dimensional-weight, additional handling, and demand fees that may apply simultaneously.
This is also the right time to compare forecast volume with carrier baseline calculations. For FedEx enterprise shippers, the June baseline period has already been established, so brands can estimate which high-volume surcharge tier they may enter before peak begins.
Navigating demand surcharges with Kase
Navigating additional fees during peak season can be challenging, but proper planning and strategic adjustments can help ecommerce merchants protect profitability during the holiday shipping season.
Start by reviewing shipping options, implementing early holiday promotions, and using technology to evaluate fulfillment and transportation costs.
In 2026, that review should extend beyond the carrier’s headline peak rate. Fuel, dimensional pricing, residential charges, service selection, shipment origin, and package characteristics all affect what a holiday order ultimately costs to deliver.
A 3PL partner should be able to help brands evaluate those variables, compare carrier services, and determine when different fulfillment nodes or shipping methods make financial sense.
Kase’s customizable rate-shopping capabilities allow brands to compare shipping options using the factors that matter to each order, including cost and delivery speed. Combined with a distributed fulfillment network, that gives brands more options for managing holiday parcel costs as carrier pricing changes.
Peak season surcharge FAQs
Are peak season surcharges and demand surcharges the same thing?
They are closely related, but carriers use the terminology differently. “Peak” typically refers to temporary charges during predictable high-volume periods such as the holidays. “Demand surcharge” is broader and can be applied when volume, capacity, or operating costs warrant additional pricing. FedEx now primarily uses “Demand Surcharge,” while Amazon Shipping describes peak surcharges as a category of demand surcharge.
Do fuel surcharges replace peak season surcharges?
No. Fuel and peak or demand surcharges can apply at the same time. That distinction is particularly important in 2026 because fuel fees rose substantially before holiday demand surcharges were announced.
How is baseline volume calculated?
It depends on the carrier and program. For FedEx’s 2026 enterprise Demand Residential Delivery Charge, holiday calculation-week volume is compared with average weekly residential and Ground Economy volume from June 1 through June 28, 2026. FedEx then applies a two-week lag between the calculation week and the week when the surcharge is billed.
Are all 2026 peak season surcharge rates available yet?
No. As of August 11, FedEx and Amazon’s fulfillment programs have published major 2026 holiday fee information, while the complete UPS holiday schedule and Amazon Shipping parcel schedule remain pending. USPS already has an 8% temporary transportation-related price increase in effect through January 17, but it has not announced a separate 2026 holiday-specific table.
Kase will update the carrier tables as those remaining announcements are released.
References:
- https://www.prnewswire.com/news-releases/data-fuel-price-shocks-ripple-through-freight-markets-302825125.html?_sp=40c4ee4b-c058-4461-9a02-5323ad378c05.1786465613795
- https://www.fedex.com/en-us/shipping/rate-changes/demand-surcharges.html
- https://about.usps.com/newsroom/national-releases/2026/0325-usps-announces-transportation-related-time-limited-price-change.htm
- https://sellercentral.amazon.com/seller-forums/discussions/t/3e31fbb7-04e0-4ed4-873e-f74b1052e2ff?_sp=40c4ee4b-c058-4461-9a02-5323ad378c05.1786468089577
- https://www.joc.com/article/up-imposes-peak-season-surcharge-on-low-volume-shippers-6237274
- https://wwwapps.ups.com/assets/resources/webcontent/en_US/PeakDemandSurcharges_US.pdf
- https://www.ups.com/us/en/support/shipping-support/shipping-costs-rates/fuel-surcharges
- https://postalpro.usps.com/node/15156?_sp=40c4ee4b-c058-4461-9a02-5323ad378c05.1786469763768
- https://sellercentral.amazon.com/seller-forums/discussions/t/7cbc0233-ee5b-4359-978a-dee7cad5c6f4
- https://sellercentral.amazon.com/help/hub/reference/external/GABBX6GZPA8MSZGW?_sp=d8d730d8-fad2-4adc-9cce-636ac0fb7929.1786470803221&locale=en-US
- https://www.ontrac.com/surchargesandrates/
