On June 23, 2025, FedEx released updated Demand Surcharge rates for U.S. international services, followed by new domestic Demand Surcharges on July 8, 2025. These charges apply during peak volume periods and are designed to offset network costs amid heightened shipping demand. UPS details are still pending for 2025.
What’s Changing
1. U.S. International Demand Surcharge (Announced June 23, 2025)
Effective June 2, 2025, FedEx modified its international surcharges for U.S. export/import shipments¹:
Parcel minimum: $1 per shipment
Freight minimum: $15–$50 per shipment (depending on service)
Per-pound origin-destination charges:
E.g., U.S.–Canada: $0.49/lb
U.S.–Israel: $0.22–$0.73/lb
FedEx International Ground to Canada: $0.49/package
2. U.S. Domestic Demand Surcharges (Announced July 8, 2025)
FedEx announced peak‑season Demand Surcharges spanning late 2025 to early 2026 for U.S. ground and express shipments²:
Periods: Sept 29–Nov 23 / Nov 24–Dec 28 / Dec 29–Jan 18
Additional Handling: $8.25 / $10.90 / $8.25
Oversize Charge: $90 / $108.50 / $90
Ground Unauthorized Package: $490 / $545 / $490
Express Package Demand Surcharge (e.g. Priority Overnight): $1.05 / $2.10 / $1.05
Ground residential & Home Delivery: $0.40 / $0.65 / $0.40
FedEx Ground Economy (contract-only): $2.20 / $3.55 / $2.20
Residential Delivery Charge: dynamically calculated weekly for enterprise shippers (>20k residential packages), billed 2 weeks after volume spike
Surcharge Periods Summary:
Period | Start | End |
|---|---|---|
Early peak | Sept 29, 2025 | Nov 23, 2025 |
Holiday peak | Nov 24, 2025 | Dec 28, 2025 |
Extended peak | Dec 29, 2025 | Jan 18, 2026 |
Why It Matters
Higher cost pressure: This year’s surcharges, especially for oversize and residential deliveries, are substantial—e.g., $545 for an unauthorized package—not just modest rate increases.
Planning essential: These surcharges spike during the busiest weeks. Shippers running high-volume programs during these windows—especially Black Friday through mid-January—must build them into rate projections.
Contract impact: Dynamically priced residential delivery charges add uncertainty, particularly for large enterprise shippers.
What Shippers Should Do
Review peak-shipping strategies: Optimize dimensioning, residential vs. commercial delivery, and Ground Economy vs. standard Ground.
Negotiate with carriers: High-volume shippers should consider tier exceptions or revised terms to mitigate peak surcharges.
Monitor ongoing changes: UPS hasn’t released its peak-season surcharge structure; it typically follows in August. Watch for those details to complete 2025 planning.
How Lojistic Can Help
FedEx’s 2025–2026 Demand Surcharges reflect a strategic effort to manage capacity and costs over the holiday peak. These fees—covering size, handling, residential delivery, and unauthorized packages—can significantly affect shipper pricing and contract structures.
Lojistic helps businesses prepare by providing visibility into carrier activity, surcharges, and invoice trends. With our platform, users can simulate peak scenarios, monitor fee changes, and proactively adapt to carrier pricing shifts.
Sources
Author
Bryan Van Suchtelen
Bryan Van Suchtelen
Corporate Director of Rate Services
With more than 34 years of parcel experience, Bryan Van Suchtelen is the Corporate Director of Rate Services at Lojistic, one of the nation’s top logistics and transportation cost management companies.
Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers.
At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars.