Businesses that prepare early for the holiday season tend to be more successful in generating profits. So, online retailers must have robust e-commerce holiday shipping solutions. During the holiday season, customers expect good deals, and it is time for companies to increase their sales volumes. Quick deliveries and shipping offers are the norm during the holiday season. Shipping carriers, such as UPS, FedEx, DHL, and more, announce holiday season fees to cope with the increased demand.
This article discusses the recent FedEx Peak Season Surcharges announced in July. Furthermore, we examine the various FedEx surcharges and their comparison with UPS surcharges. The impact of these surcharges on businesses and the ways to offset their effect are a part of this article.
FedEx Peak Season Surcharge 2025
On July 8 of this year, FedEx Peak Season Surcharges received new updates for the US domestic market. The FedEx Demand Surcharges are for US packages and International Ground shipments. The fees are for additional handling, oversized, and unauthorized packages. The surcharge amount varies for Halloween, pre-Thanksgiving, Thanksgiving, Christmas, and post-Christmas.
For instance, the demand surcharge for Additional Handling fees is
- $8.25 for a package from September 29 to November 23, 2025, and December 29, 2025, to January 18, 2026
- $10.90 for each package from November 24 to December 28, 2025
Similarly, the demand surcharge for Oversize and Ground Unauthorized packages differs during the holiday season. The fees are $90 to $108.50 per package for shipping Oversized packages and $490 to $545 per package for shipping Ground Unauthorized packages. Check the link here to know more.
FedEx has announced a Demand Surcharge for some services, effective from October 27, 2025, to January 18, 2026. The surcharge amount for FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day A.M., FedEx 2Day, and FedEx Express Saver services is $1.05 to $2.10 per package. For residential shipments, the demand fee is $0.40 to $0.65 per package for FedEx Ground and FedEx Home Delivery.
Furthermore, contract services like FedEx Ground® Economy Package Services will charge $2.20 to $3.55 per package during the holiday season.
The Residential Delivery Charge is a part of the peak season surcharge. FedEx has made the Demand Surcharge dynamic, as the fee amount will change each week. FedEx will calculate the surcharge based on the customer’s shipping volumes and the week of shipment. FedEx has shared the information on its website.
FedEx has announced a Demand surcharge for US International services, effective July 21, 2025. Shippers can visit the FedEx website to know more about the changes in the FedEx International services.
Update in FedEx shipping rates
FedEx shipping rates are changing in August. The fees for parcel pickups in the US and Canada have seen updates. The charges for the size of the packages and the US Inbound processing fees for US import shipments have increased. The rise in shipping rates affects the shipping costs of small businesses.
Companies reduce shipping costs by strategically choosing the package size and dimensions. In addition, origin and destination ZIP codes affect the shipping expenses of small businesses. Shipping speed also adds to shipping costs. For example, air shipping for next-day shipments is costly. By opting for FedEx Standard services, one can economically ship packages to nearby destinations.
Which is cheaper for holiday shipping, UPS or FedEx? This query arises for many shippers planning to earn this holiday season. We will compare the surcharges between the two premier shipping carriers, FedEx and UPS. It will help businesses decide which carrier suits their needs.
FedEx vs UPS shipping surcharges
During the holiday season, FedEx’s peak pricing is the Demand Surcharge. UPS has yet to announce its peak season surcharge. But, shippers can assume it will be on similar lines to FedEx Demand Surcharge rates. FedEx Demand Surcharge is from $8.25 to $545 per package for Additional Handling, oversize, and Unauthorized packages.
UPS has announced Additional Handling Charges for the US market from August 17, 2025. The fees vary from $43 to $55 for each package from Zone 2 to Zone 7. The calculation of these surcharges is based on cubic size rather than by length plus girth. This type of calculation restricts the package sizes, thus affecting shipping costs. However, UPS has not yet announced its Peak Season surcharges. UPS Demand Surcharges may arrive this month, so shippers need to wait and watch.
FedEx delivery surcharge is due to the increased shipping volumes during the holiday season. The expectations for quick and efficient deliveries are rising, and so are the operating expenses. Market volatility also contributes to the steep fees of FedEx. FedEx seasonal fees for residential deliveries are high, which will impact many businesses.
Impact of FedEx’s peak pricing on businesses
Companies shipping goods to residential areas will feel the effects of FedEx Demand Surcharges. An Additional Handling fee is on packages requiring special attention. Hence, shippers need to strategize shipments to avoid this surcharge. Returns and exchanges during the post-holiday season cause a surge in fees. These fees will impact the bottom line of many companies.
Shippers can optimize the packaging of their goods to reduce the impact of FedEx’s peak season surcharges. Companies require better strategies regarding their residential and commercial deliveries to avoid the FedEx Delivery surcharge. Further, shippers should revise their agreements with FedEx to offset the peak season surcharges.
How Audintel can help businesses
The recently announced FedEx Demand Surcharges affect companies that use FedEx as their shipping carrier. Audintel helps shippers understand complex carrier rates, surcharges, and other fees. Our team of experts deciphers these surcharges to help companies ship goods intelligently. We provide greater visibility to shippers regarding shipping frequencies and volumes. It helps businesses plan their inventories and service options.
Audintel’s AI-powered automated software evaluates the shipping services required by businesses. Our software tools predict peak season demands to help shippers plan their shipments. Our software provides real-time insights into logistics management. It ensures companies make well-informed decisions.
Our Transportation Spend Management (TSM) services reduce shipping expenses. We help shippers plan for peak season surcharges by negotiating early with shipping carriers. It lessens the financial impact on businesses with sudden FedEx Demand Surcharges announcements.
Further, our optimization services analyze GRI impact and Carrier Pricing Data. Our intuitive dashboards give an in-depth visualization of shipping data. It helps shippers acquire early discounts and fee reductions from shipping carriers. Furthermore, we monitor fee changes of different shipping carriers and advise companies on using alternative shipping carriers.
Conclusion
FedEx Peak Season surcharges are increasing every year. However, these surcharges will not affect your shipping costs if you have a well-negotiated contract with FedEx. Businesses can avoid Peak Season surcharges by using alternative shipping carriers. Moreover, opting for a flat-rate shipping option, like FedEx One Rate, is more affordable than other FedEx services.
Audintel’s intelligent tools and technologies manage many Carrier Pricing agreements. We calculate shipping expenses for shippers based on complex carrier rules and fee structure. Our optimization tools help shippers plan their shipping budgets. Audintel monitors Carrier Service performance and audits shipping-related expenses.
We can address your queries regarding FedEx Demand Surcharges and other fees. Audintel has experts who were previously associated with FedEx and UPS. They can assist shippers in preparing for contract negotiations. To know more about Audintel’s vast array of services, see our Audintel website. Additionally, you can contact us at +1 (619) 354 8539 or book a free demo with us.
