The New Year is nearly here, a few weeks away. Christmas shopping is in full swing and a busy period for businesses. It is the time to increase revenue and profit margins for companies. However, last-minute shoppers may have to shed extra dollars when shipping through UPS as their shipping rates rise a day before Christmas Eve.
So, what can shippers expect in 2025 in terms of shipping costs? UPS has announced new shipping rates for 2025. UPS Peak Surcharges were discussed in our earlier article. This article will explore the recent shipping rates and the changes in shipping services.
UPS Shipping Costs and Rates in 2025
Shipping expenses vary for businesses, depending on their shipping volumes and frequencies. Further, package weights, dimensions, sizes, and destinations add to shipping costs. UPS shipping zones based on different ZIP codes complicate the shipping cost calculations. Moreover, the delivery speed of packages adds to the shipping expenses.
The annual UPS General Rate Increase (GRI) will be 5.9%, from December 23, 2024. This increase is subject to the agreements made with UPS and the shipping profiles of businesses. Moreover, shippers paying invoices through credit cards will have to face a new fee, Credit Card Surcharge. It is an additional charge of 2% of the total amount payable on an invoice. The amount is for invoices paid by credit card. However, it is not applicable for debit card payments. UPS accounts in jurisdictions of Minnesota, New York, Connecticut, Puerto Rico, Maine, Massachusetts, and Oklahoma do not have the Credit Card Surcharge.
Thus, businesses have to develop efficient shipping strategies to reduce shipping costs.
UPS Rates in 2025
Initially, we will explore the various UPS rates of 2025. UPS Retail Rates, UPS Daily Rates, and Hundredweight Service rates are a few of the UPS rates. These rates do not include fuel surcharges. In addition, there are Letter Rates that do not exceed eight ounces. The term Letter includes documents, electronic media shipments, and correspondence.
UPS Retail Rates for 2025
Shippers use retail rates when they ship from a UPS location and do not have a UPS permanent account or
- a scheduled pickup service or
- use a payment card for shipping packages infrequently
The U.S. package retail rates will rise in 2025. The increased charges are for UPS Air, UPS® Ground, and International services. In addition, Small Business Rates are rising, which will impact shipping costs. UPS Retail Rates will vary if shippers use third-party shipping and packing retailers. It will be expensive for businesses trying to cut costs.
2025 UPS Daily Shipping Rates and Zones
Most businesses and shippers with shipping volumes use UPS Daily Rates. These rates published by UPS cover package weights, services, and shipping zones. They are the base rates that apply to UPS account holders.
Who are the UPS account holders?
They are the shippers with a UPS account from July 11, 2016. It also includes companies that received Daily rates before July 11, 2016. Further, businesses with a scheduled daily UPS pickup or a written agreement with UPS are account holders.
UPS Daily Shipping rates across the U.S. 48 contiguous states for some ZIP codes have changed from October 21, 2024. The increase in shipping rates applies to expanded ZIP code areas.
In 2025, businesses can expect a rise in the UPS Daily Rates for UPS Air, UPS® Ground, and International services. It will be 5.9% on average. This can be observed in UPS Ground for 1lb packages is 11.32$ in 2025, when it was 10.70$ in 2024 (for Destination ZIP codes starting with 004-005).
For instance, UPS Next Day Air for 1lb packages will be 42.42$ in 2025, compared to 40.40$ in 2024 (for Destination ZIP codes starting with 004-005). It’s a 5% increase from last year’s values.
For flat rate shipping, also known as UPS Simple Rate, the Extra Small Package for UPS Ground services is 11.50$ and the Extra Large Package is 29.25$. These rates are only between the 48 contiguous states. However, these rates are higher when shipping to Remote Alaska and Hawaii.
On the other hand, in the case of UPS International Services, the UPS Rates are calculated based on the total billable weight of the packages. According to UPS website, between actual and dimensional weight of packages is the billable weight.
Please note the values are preview rates that may change according to UPS’s discretion.
What are the UPS Hundredweight Service rates?
UPS HundredWeight Services are for packages of more than 100 lbs. These services are for businesses shipping multiple packages to a single destination. It’s a cost-saving option for shipping huge quantities. The calculation of shipping costs for a UPS hundredweight service is similar to an individual shipment. It applies to businesses with a UPS account. Detailed information about UPS Hundredweight services rates for 2025 can be accessed here.
UPS Surcharges 2025
UPS surcharges have changed from 2024 to 2025. Other than Credit Card Surcharges levied by UPS, additional charges are in force. For example, Delivery Are Surcharge has extended its surcharges to more ZIP codes. In addition, ZIP codes assigned to some regions have changed. Shippers can access the detailed list of ZIP codes on the UPS website.
Additional handling of packages will be calculated based on the package’s length, width, or length plus girth. The minimum billable weight is 40 pounds. It is a recent charge for special handling of packages. The Additional Handling Charge (AHC) will be different in 2025. It will be by cubic volume.
Large Package Surcharge (LPS) in 2025 is changing. It will use revised calculations of length, weight, or cubic volume for shipments. For instance, the Large Package Surcharge is 190$ for residential locations in Zone 2. But, from December 23, 2025, the surcharge will be 240$. Many shippers and their customers will be impacted by 50$ hike. Further information on the rise in UPS Surcharges for 2025 is accessible here.
In addition, UPS announced a Surge Fee for international shipments from December 1, 2024. The information about the Surge Fee is available in detail on the UPS website.
Consequences of increase in UPS Rates 2025 on shipping expenses
UPS Ground services to residential or remote locations will increase in 2025. In addition, UPS Air services are rising as many customers want quicker deliveries. Alternatively, the surcharges on large packages and additional handling will climb exponentially in 2025. So, it will be costly for shippers to ship extra-large packages through UPS.
New rules on billing, surcharge calculations, and credit card fees will make shipping expensive for many in 2025. The change in the listing of ZIP Codes will impact shipping expenses. Now, shippers may be levied delivery area surcharge for locations that were not remote earlier. Fuel surcharges will raise the shipping expenses for businesses.
To sum up, companies need effective shipping strategies to control shipping costs. Businesses need a better understanding of their shipping profiles to manage their finances. Shippers need experts to help them understand the complexities of UPS rates.
Audintel to offset rising shipping costs with innovative software solutions.
Audintel offers innovative solutions to mitigate rising shipping costs. Our experts help shippers plan their shipping strategies. We help businesses negotiate with shipping carriers for discounts after advice from our team of experienced negotiators. Our technology solutions optimize our clients’s shipping operations.
Our advanced software solutions aid businesses in their shipping profiles and focus on areas that can lower shipping expenses. We provide shipping spend analysis for timely operations without disruptions. Audintel helps shippers understand the complexities of the various UPS Rates and shipping zones.
Final remarks
Businesses planning shipping budgets for the new year will have to consider UPS rates for 2025. It will be challenging for shippers to understand the complex UPS shipping rates. Audintel, with its intelligent technological solutions, can help shippers understand the UPS rates. We can advise companies on ways to cut down shipping expenses.
Contact us at +1 (619) 354 8539 – to learn how to dodge high shipping costs. To understand UPS Shipping rates for 2025 and our solutions for shippers, visit our Audintel website.
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