2025 Year-End Planning for Your FedEx and UPS Shipments: Surcharges, Deadlines, and Rate Increases

10/16/2025 — Bryan Pruett

The end of the year is often hectic for many businesses, with 2025 proving no different. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.

Ship early

We can’t stress this enough! The closer we get to Christmas, the higher the demand on carrier networks. While major disruptions aren’t expected, the seasonal surge in shipments and subsequent strain on carrier networks can still lead to delays. Being proactive and shipping early gives you extra time and flexibility if things slow down. This is especially important for time-sensitive packages that need to be delivered by Christmas. Regardless of who you ship with, the holiday season can be unpredictable; plan ahead and build in some buffer time to help ensure your packages reach their destinations on schedule.

Review holiday shipping deadlines

For retailers, this is especially important. As customers place their orders for holiday gifts, they’ll want to know that they’ll receive them before the big day. FedEx and UPS have released their shipping deadlines, so make sure to review them and plan accordingly. That way, you’ll be able to manage expectations appropriately and keep your customers happy.

Peak season surcharges

Both FedEx and UPS are applying demand surcharges for the 2025 seasonal shipping surge. These fees add extra costs to packages, especially hitting residential deliveries and oversized packages the hardest during peak weeks. 

The first wave of demand surcharges runs from late September through the end of November. They range from $0.40 to $2.20 for residential deliveries and select ground and expedited services.

All of the demand surcharges then increase the week of Thanksgiving through the week of Christmas. The surcharges for standard-sized shipments range from $0.60 to $3.55 during this time. On top of that, if your package is considered oversized or requires additional handling, you can expect to pay up to an additional $545. 

For the final wave, the surcharges mirror those accessed at the beginning of peak season and last until January 17th for UPS and 18th for FedEx.

One important thing to note is that throughout the entire peak season, many of these additional fees adjust weekly or even increase based on your account’s shipping volume. To avoid surprises, review the published information and factor these seasonal adjustments into your budgets.

Prepare for the 2026 rate increases

Don’t forget that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers rolled out an average rate increase of 5.9% in 2025, and FedEx has announced another average 5.9% rate hike for 2026. While UPS hasn’t released its new rates as of early October, it typically matches FedEx’s annual increase, so shippers should expect a similar announcement soon.