UPS and FedEx 2026 Rate Increases and Surcharge Changes

Shipping costs are rising again in 2026. UPS and FedEx 2026 rate increases are now in effect, bringing changes to that impact ground, air, residential delivery, dimensional weight, and oversized shipments.

While both carriers announced a 5.9% average base rate increase, the real cost impact goes beyond the headline number. Residential fees, additional handling charges, and dimensional thresholds continue to expand, compounding total shipping spend for many brands.

Here’s what changed — and what it means for your margins.

When Did UPS and FedEx 2026 Rate Increases Take Effect?

UPS

Small Business Rate Guide effective January 26, 2026

Value-added services and other charges updated effective December 22, 2025

FedEx

FedEx Standard List Rates effective January 5, 2026

2026 surcharge changes effective January 5, 2026 (unless otherwise noted)

If you ship daily, these changes are already impacting your cost structure.

UPS 2026 Rate Changes

1. Base Transportation Rates

UPS released its 2026 Small Business Rate Guide effective January 26, 2026.

Like previous years, rates vary by:

Service level (Ground, 2nd Day Air, Next Day Air, etc.)

Zone

Weight

Residential vs commercial

Contract discounts

While UPS advertises a general rate increase (GRI), the actual cost impact varies significantly by shipment profile.

2. UPS Residential Surcharge Increase

Residential surcharges increased in 2026:

Ground Residential: $6.10 → $6.50
preview-accessorial-us-en

Air Residential: $6.55 → $7.00
preview-accessorial-us-en

For high-volume DTC brands, this adds up quickly.

Example:
If you ship 20,000 residential packages annually, a $0.40 increase equals $8,000 in added cost — before fuel.

3. UPS Additional Handling Criteria (Dimensional + Packaging)

UPS defines Additional Handling when packages exceed specific size or packaging criteria:

Longest side over 48 inches

Second-longest side over 30 inches

Cubic size over 10,368 cubic inches
small-business-rate-guide-us-en

Non-corrugated packaging, banding, shrink wrap, cylindrical items
small-business-rate-guide-us-en

Important:
Additional Handling is assessed once per package, even if multiple criteria apply.

This is critical for oversized ecommerce brands.

4. UPS Large Package Surcharge (Oversize)

A package qualifies as a Large Package if:

Length + girth exceeds 130 inches

Length exceeds 96 inches

Weight exceeds 110 lbs

Cubic size exceeds 17,280 cubic inches

Large Packages:

Have a minimum billable weight of 90 lbs
small-business-rate-guide-us-en

Do not incur Additional Handling if Large Package applies

This heavily impacts:

Furniture brands

E-bike companies

Fitness equipment sellers

Outdoor product brands

5. UPS Delivery Area and Remote Surcharges

Delivery Area Surcharges increased across commercial and residential tiers.

Remote area surcharges also increased:

US 48: $15.35 → $16.50
preview-accessorial-us-en

If your customer base is national, this change is unavoidable.

FedEx 2026 Rate Changes

1. Base Transportation Rates

FedEx published its Standard List Rates effective January 5, 2026.

Rates apply to:

FedEx Ground®

FedEx Home Delivery®

Express services (Priority Overnight, 2Day, etc.)

Freight and international

Like UPS, pricing varies by zone and weight.

2. FedEx Residential Delivery Charge Increase

For U.S. Package Services:

Residential Delivery Charge: $6.55 → $6.95
surcharge_and_fee_changes_2026

FedEx Ground/Home Delivery Residential: $5.95 → $6.45
surcharge_and_fee_changes_2026

These increases mirror UPS and further raise DTC fulfillment costs.

3. FedEx Additional Handling Surcharge

For U.S. Package Services (Dimension criteria):

Zone 2: $28 → $29.50

Zone 3–4: $31 → $32.75

Zone 5–6: $36 → $38.50

Zone 7+: $38 → $40.75
surcharge_and_fee_changes_2026

Weight-based Additional Handling also increased across all zones.

This is especially important for brands shipping:

Products over 50 lbs

Long, narrow packages

Soft-sided packaging

Irregular-shaped products

4. FedEx Declared Value Increases

Declared value for U.S. packages increased:

$4.50 → $4.95 (for $100.01–$300)

$1.50 → $1.65 per $100 above $300
surcharge_and_fee_changes_2026

For high-value electronics, supplements, or luxury goods, insurance costs are rising.

Dimensional Weight Rules in 2026

Dimensional weight continues to drive cost inflation.

UPS Dimensional Divisors

Domestic: L × W × H ÷ 166

International: L × W × H ÷ 139

Even small carton inefficiencies dramatically increase billed weight.

This is one of the biggest hidden profit killers in ecommerce fulfillment.

2025 vs 2026 UPS & FedEx Rate and Surcharge Comparison

The table below summarizes the most impactful pricing changes tied to the UPS and FedEx 2026 rate increases. The table below includes the most impactful pricing changes between 2025 and 2026 across base rates, residential fees, dimensional triggers, and oversize criteria.

This is where the real cost differences show up.

UPS & FedEx 2026 Shipping Cost Comparison

What This Table Reveals

While the headline 5.9% increase remained the same year over year, the cost pressure is coming from:

Residential surcharge increases

Additional Handling fee expansion by zone

Oversize cost escalation

Declared value fee increases

Remote area surcharge adjustments

For ecommerce brands shipping residential parcels or bulky products, these layered increases compound.

A shipment that triggers residential, additional handling, fuel, delivery area, and declared value charges can now carry $40–$300+ in surcharges alone depending on size and zone.

That’s why many brands are seeing effective increases well above 5.9%.

What This Means for Ecommerce Brands

The 2026 changes are not just about a headline GRI.

They compound across:

Residential delivery

Delivery area surcharges

Additional Handling triggers

Dimensional weight calculations

Declared value

Large Package rules

Brands shipping oversized or heavy products feel the impact most.

A 5–7% base rate increase can easily turn into a 10–18% total cost increase once surcharges are factored in.

How to Offset the 2026 Shipping Increases

Here’s what high-performing brands are doing:

1. Carton Optimization

Reducing dimensional weight lowers:

Base rate

Additional Handling

Large Package exposure

2. Rate Shopping Between Carriers

UPS may be cheaper on one zone.
FedEx may be cheaper on another.

Without automated rate comparison, you overpay.

3. Negotiated Carrier Discounts

List rates are not what most enterprise shippers pay.

Discount structures matter more than the published GRI.

4. Reengineering Oversized Shipments

For products near:

48”

96”

105” length + girth

110 lb thresholds

Even minor packaging redesign can eliminate surcharge tiers.

UPS vs FedEx 2026: Side-by-Side Snapshot

Why This Matters More in 2026

Carrier strategy continues shifting toward:

Higher revenue per package

Penalizing inefficient packaging

Targeting oversized shipments

Expanding surcharge revenue

For ecommerce brands, margin pressure is real.

How 3PL Center Helps Brands Control 2026 Shipping Costs

At 3PL Center, we help brands reduce exposure to:

Dimensional weight overcharges

Additional Handling triggers

Oversize penalties

Residential surcharges

Our WMS includes:

Real-time rate shopping between UPS and FedEx

Box optimization logic

Visibility into surcharges

Oversized handling expertise

Negotiated carrier discounts based on volume

For brands shipping furniture, e-bikes, fitness equipment, supplements, or beauty products, the difference can be significant.

Review Your 2026 Shipping Costs Before Peak Season

Carrier increases are unavoidable. Overpaying isn’t.

If the UPS and FedEx 2026 rate increases are impacting your margins, our team can review your shipment profile, dimensional exposure, and surcharge triggers to identify cost-saving opportunities.

Book a call with 3PL Center to see where your shipping strategy can improve.