Originally posted November 5, 2024, updated October 30, 2025.
It’s that time of the year again—peak season is upon us. BFCM is around the corner and holiday shopping is ramping up…and with it, pesky peak surcharges have arrived. For ecommerce merchants, these inevitable temporary surcharges cause a surge in shipping costs during a vital time when brands are trying to secure sales and boost net profit before the end of the year.
But, not all hope is lost. By understanding surcharges and implementing strategies to mitigate them, retailers can control shipping costs and keep profits healthy during the holiday season.
Let’s dive in!
Why do carriers apply peak season surcharges?
The holiday season is the number one retail event of the year, and even though retailers and consumers are facing more challenges in 2025, the peak season will still see a surge in sales. Adobe Analytics predicts that 10 days will account for a fifth of all online sales, and like last year, the shopping and shipping window between Black Friday and Christmas Day is shorter than typical.
This means more shipments going out within a shorter timeframe. With such a massive influx of demand on carriers, it’s no surprise that they implement demand surcharges on top of regular shipping rates to offset the costs it takes to handle increased volume and ensure timely deliveries.
Understanding when these surcharges apply can help merchants plan for increased expenses, manage their budgets, and optimize ecommerce shipping strategies.
Overview of Peak Season Surcharges for 2025
UPS
UPS Holiday Fees
| Surcharge Name | Services Affected | Charge Per Package | Effective dates |
| Additional Handling | U.S. domestic, U.S. import and U.S. export shipments | $8.25 to $10.80 | Sept 28, 2025 – Jan 17, 2026 |
| Large Package Surcharge | U.S. domestic, U.S. import and U.S. export shipments | $90.50 to $107 | Sept 28, 2025 – Jan 17, 2026 |
| Over Maximum Limits | U.S. domestic, U.S. import and U.S. export shipments | $485 to $540 | Sept 28, 2025 – Jan 17, 2026 |
| Demand Surcharge | UPS Ground Residential, Air and Ground Saver packages | $0.40 to $2.05 | Oct 26, 2025 – Jan 17, 2026 |
| Demand Surcharge* | Certain UPS Ground Residential, Air Residential, Air Commercial and Ground Saver packages for qualifying customers | $0.40 to $8.75 | Oct 26, 2025 – Jan 17, 2026 |
UPS will apply a Demand Surcharge to all US domestic, import, and export shipments that require Additional Handling, Large Package, or Over Maximum Limits services. The surcharge also applies to UPS Air, Ground Residential, and Ground Saver packages.
Similar to other peak surcharges, rates are determined weekly based on your shipping volume as a percentage of your baseline; UPS defines this as your average weekly volume during the designated baseline period. The highest applicable surcharge will apply to all packages within each service level that week, using the percentage of baseline volume to determine the correct tier.
FedEx
FedEx Holiday Fees
| Surcharge Name | Services Affected | Charge Per Package | Effective dates |
| Additional Handling Surcharge | U.S. Package Services, FedEx International Ground shipments | $8.25 to $10.90 | Sept 29, 2025 – Jan 18, 2026 |
| Oversize Charge | U.S. Package Services, FedEx International Ground shipments | $90 to $108.50 | Sept 29, 2025 – Jan 18, 2026 |
| Ground Unauthorized Package Charge | FedEx Ground, FedEx Home Delivery and FedEx International Ground shipments | $490 to $545 | Sept 29, 2025 – Jan 18, 2026 |
| Demand Surcharge | FedEx First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) | $1.05 to $2.10 | Oct 27, 2025 – Jan 18, 2026 |
| Demand Surcharge | FedEx Ground residential shipments, FedEx Home Delivery residential shipments | $0.40 to $0.65 | Oct 27, 2025 – Jan 18, 2026 |
| Demand Surcharge | FedEx Ground Economy Package Services | $2.20 to $3.55 | Oct 27, 2025 – Jan 18, 2026 |
| Demand — Residential Delivery Charge* | Ground, Home Delivery, First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) | $1.55 to $8.75 | Oct 27, 2025 – Jan 18, 2026 |
FedEx’s 2025 peak season surcharges introduced higher rates than last year, extending the surcharge period from September 29, 2025, through January 18, 2026. The surcharges apply to packages requiring Additional Handling, Oversize, or Unauthorized Package services, as well as standard, expedited, and residential shipments.
Beginning October 27, FedEx will also apply multiple Demand Surcharges across Air, Ground, and Economy services, including a Residential Delivery Charge for high-volume shippers (those sending more than 20,000 residential and Ground Economy packages). As with prior years, the fee amount depends on each shipper’s baseline volume and how much their holiday volume exceeds it.
Rates will peak between November 24 and December 28, when shipping demand and operating costs are highest. FedEx stated the surcharges reflect periods when network capacity tightens and costs rise sharply, as seen in 2024 when the carrier handled nearly 24 million packages on Cyber Monday, a 70% increase over a typical day.
US Postal Service (USPS)
USPS Holiday Fees
| Surcharge Name | Services Affected | Charge Per Package | Effective dates |
| Additional Handling | U.S. domestic, U.S. import and U.S. export shipments | $8.25 to $10.80 | Sept 28, 2025 – Jan 17, 2026 |
| Large Package Surcharge | U.S. domestic, U.S. import and U.S. export shipments | $90.50 to $107 | Sept 28, 2025 – Jan 17, 2026 |
| Over Maximum Limits | U.S. domestic, U.S. import and U.S. export shipments | $485 to $540 | Sept 28, 2025 – Jan 17, 2026 |
| Demand Surcharge | UPS Ground Residential, Air and Ground Saver packages | $0.40 to $2.05 | Oct 26, 2025 – Jan 17, 2026 |
| Demand Surcharge* | Certain UPS Ground Residential, Air Residential, Air Commercial and Ground Saver packages for qualifying customers | $0.40 to $8.75 | Oct 26, 2025 – Jan 17, 2026 |
USPS Holiday Commercial Fees
| Surcharge Name | Services Affected | Charge Per Package | Effective Dates |
| ZONES 1-4 | |||
| Zones 1-4, 0-3lbs | USPS Ground Advantage, USPS Priority Mail, USPS Priority Select | $0.30 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 4-10lbs | USPS Ground Advantage, USPS Priority Mail, USPS Priority Select | $0.45 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 11-25lbs | USPS Ground Advantage, USPS Priority Mail, USPS Priority Select | $0.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 26-70lbs and Oversized | USPS Ground Advantage, USPS Priority Mail, USPS Priority Select | $2.25 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, Cubic Tiers 1-3 | USPS Ground Advantage Cubic, USPS Priority Mail Cubic | $0.30 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, Cubic Tiers 4-5 (PM), 4-9 (GA) | USPS Ground Advantage Cubic, USPS Priority Mail Cubic | $0.35 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, Cubic Tier 10 (Ground Advantage) | USPS Ground Advantage Cubic | $0.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 0-3lbs | USPS Priority Mail Express | $1.00 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 4-10lbs | USPS Priority Mail Express | $1.50 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 11-25lbs | USPS Priority Mail Express | $3.50 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 1-4, 26-70lbs | USPS Priority Mail Express | $8.95 | Oct 5, 2025 – Jan 18, 2026 |
| ZONES 5-9 | |||
| Zones 5-9, 0-3lbs | USPS Priority Mail | $0.70 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 4-10lbs | USPS Priority Mail | $1.25 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 11-25lbs | USPS Priority Mail | $2.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 26-70lbs and Oversized | USPS Priority Mail | $6.50 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, Cubic Tiers 1-3 | USPS Priority Mail Cubic | $0.70 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, Cubic Tiers 4-5 | USPS Priority Mail Cubic | $1.25 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 0-3lbs | USPS Ground Advantage | $0.35 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 4-10lbs | USPS Ground Advantage | $0.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 11-25lbs | USPS Ground Advantage | $1.25 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 26-70lbs and Oversized | USPS Ground Advantage | $5.50 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, Cubic Tiers 1-3 | USPS Ground Advantage Cubic | $0.35 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, Cubic Tiers 4-9 | USPS Ground Advantage Cubic | $0.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, Cubic Tier 10 | USPS Ground Advantage Cubic | $1.25 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 0-3lbs | USPS Priority Mail Express | $1.75 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 4-10lbs | USPS Priority Mail Express | $3.95 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 11-25lbs | USPS Priority Mail Express | $7.50 | Oct 5, 2025 – Jan 18, 2026 |
| Zones 5-9, 26-70lbs | USPS Priority Mail Express | $13.00 | Oct 5, 2025 – Jan 18, 2026 |
The U.S. Postal Service’s temporary price increase for select package services (including Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select) during the 2025 peak holiday season will take effect October 5, 2025, through January 18, 2026, helping USPS offset higher seasonal handling costs. The adjustment aims to align with industry practices and support the agency’s Delivering for America plan to ensure long-term financial sustainability.
Amazon Shipping
Amazon Shipping Holiday Fees
Amazon Shipping announced its 2025 peak season surcharges in September, which will apply during three high-demand periods; October 26–November 22, November 23–December 27, and December 28–January 17. Surcharge amounts vary by shipment type, with the highest rates applying during the core holiday window. Despite the added fees, Amazon Shipping continues to offer benefits such as no residential surcharges, no weekend delivery fees, seven-day delivery, and end-to-end tracking, helping merchants maintain reliable, predictable shipping throughout the busy season.
| Demand Surcharge Criteria | Oct 26–Nov 22, 2025 | Nov 23–Dec 27, 2025 | Dec 28, 2025–Jan 17, 2026 |
| Per-Package Demand Surcharge | $0.40 | $0.60 | $0.40 |
| Additional Handling | $8.25 | $10.80 | $8.25 |
| Large Packages | $90 | $107 | $90 |
| Extra Heavy Package Fee | $485 | $540 | $485 |
Reduce 2025 Peak Season Fees: 6 tips for success
While it can feel like every peak season surcharge is burning a hole in your brand’s wallet, practical strategies exist to offset fees! Consider the tips below to ensure a happy and healthy peak season.
Keep your DIM weight down
Have you ever received a box within a box within a box? Shipping fees take many forms, but dimensional weight is most certainly one of them. DIM weight is the primary way that shipping carriers charge shipping costs, taking into account the weight and the dimension of a package.
Merchants who utilize smaller boxes or mailer envelopes to reduce packaging dimensions will lower costs on each shipment and reduce the likelihood of additional handling fees. Learn how to calculate your dimensional weight here.
Incentivize early holiday shopping
The easiest way to avoid peak season surcharges is to encourage your customers to shop before they hit (easier said than done!) Try incentivizing purchasing in early September by offering early-bird discounts or promotions. Early shipments can avoid the highest surcharges that apply during peak demand weeks, helping to reduce costs while ensuring timely delivery.
Compare rates across multiple carriers
Sticking with one carrier throughout the holiday season means you’re tied to their particular surcharges. Instead, compare rates across UPS, FedEx, USPS, and regional carriers to determine which rates make the most sense for each package and destination. To make this process more seamless, leverage shipping rate shopping software that searches for the most cost-effective rate based on parameters like carrier selection, transit time, and delivery promises.
Consider multinode fulfillment
For brands that have a nationwide audience and a high volume of orders, it may make sense to consider a multinode fulfillment approach to get closer to customers. By ensuring shorter delivery distances with strategically located fulfillment centers, merchants can reduce costs and avoid surcharges associated with extended or remote area deliveries.
Determine your free shipping threshold
Every shipment counts when a brand is footing the shipping bill. Setting free shipping thresholds is a surefire way for retailers to increase average order value and offset higher shipping costs. Plus, it encourages customers to spend more at one time, reducing the number of shipments.
Setting a free shipping threshold works best when merchants determine their Goldilocks number, not too low, not too high—just right. A shipping threshold that’s too high could potentially turn customers away, and one that’s too low won’t provide any profit. To best determine your free shipping threshold, determine your typical average order value, and ensure the threshold is higher (but not too much higher!).
Explore omnichannel strategies
To truly reduce shipping distance and cost, retailers may want to explore omnichannel strategies such as buy online, pick up in-store (BOPIS). This completely cuts residential delivery charges out of the equation while speeding up the delivery process for customers.
For ecommerce merchants who don’t have their own retail stores, working with big-box retailers can be a great way to encourage BOPIS, offering customers more flexibility on how they want to receive their orders.
Navigating demand surcharges with Kase
Navigating additional fees during peak season can be challenging, but with proper planning and strategic adjustments, ecommerce merchants can maintain profitability and have a healthy holiday shipping season.
Start with reviewing your shipping options, implementing early holiday promotions, and utilizing technology to streamline fulfillment. By taking proactive steps, ecommerce retailers can mitigate the impact of seasonal surcharges and keep their business competitive throughout the holiday season.
No matter the time of year, your 3PL partner should be able to help you optimize your shipping strategy. From a network of strategically located fulfillment centers to top-tier technology and operations that enable seamless shipping, your partner should make the holiday season easier and more cost-effective.
Kase offers customizable rate shopping that enables merchants to search for the best rates based on unique parameters that align with their business needs—merchants can prioritize certain aspects of shipping, like speed or cost. Plus, with facilities in Los Angeles, Columbus, and Dallas, Kase unlocks an affordable, tailored solution to your fulfillment needs.
Reach out to one of our shipping experts today to learn more.
