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UPS Surcharges and Value-Added Services for 2025
Explore UPS 2025 surcharges update, including trends and strategies to minimize costs. Learn how 3PL Center helps businesses save on oversized shipments.
Published on November 25, 2024
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What You Need to Know
On December 23, 2024, UPS will implement new rates for value-added services and surcharges as part of its annual GRI (General Rate Increase). These increases will affect shipping costs for businesses of all sizes, making it crucial to understand what’s changing and how to adapt. Whether you’re shipping domestically or internationally, understanding these updates is crucial for managing costs effectively and staying competitive. This guide breaks down the shipping surcharge updates, highlights key trends, and shares strategies to help businesses manage shipping costs effectively in 2025.What Are Shipping Surcharges and Value-Added Services?
Shipping surcharges are additional fees imposed by carriers like UPS to cover extra costs incurred during specific delivery situations. These could include handling oversized packages, delivering to remote locations, or managing hazardous materials. Value-Added Services encompass optional features or enhancements that improve shipping flexibility, security, or efficiency, such as declared value coverage, dry ice for refrigerated goods, or delivery confirmation. These charges ensure UPS maintains high service standards while balancing operational costs.Why Do These Changes to the UPS Surcharges Matter?
Whether you’re shipping domestically or internationally, these updates could significantly impact your logistics budget. By exploring the details of these surcharges and implementing effective strategies to manage them, businesses can avoid unnecessary shipping surcharges and remain efficient in a competitive market.Summary of Domestic UPS Surcharges Changes (2024 vs. 2025)
| Service | 2024 Rate ($) | 2025 Rate ($) | Change (%) | Description |
| Additional Handling (Weight) | $34.50 – $41.50 | $43.50 – $52.75 | +26.1% to +27.2% | Applies to packages exceeding UPS’s weight thresholds. |
| Additional Handling (Dimensions) | $22.00 – $28.25 | $28.00 – $36.00 | +27.3% | For packages exceeding length or girth limits. |
| Packaging | $19.50 – $24.50 | $25.00 – $31.00 | +28.2% | Charged for using UPS-provided packaging materials. |
| Address Correction (Air/Ground) | $22.00 | $23.50 | +6.8% | Fee for correcting inaccurate or incomplete shipping addresses. |
| Chargeback for Billing Shipments | $21.00 | $22.50 | +7.1% | Charged when a consignee refuses payment, billing costs back to the shipper. |
| Dangerous Goods (Air Accessible) | $160.00 | $176.50 | +10.3% | Extra charge for hazardous materials accessible during air transit. |
| Declared Value for Carriage | $1.45/$100 (Min $4.35) | $1.60/$100 (Min $4.85) | +10.3% | Cost for insuring shipments with declared value. |
| Delivery Area Surcharge (Residential) | $5.70 | $6.15 | +7.9% | For deliveries to residential addresses. |
| UPS Returns (3 Pickup Attempts) | $8.90 | $13.50 | +51.7% | Charged for return shipments requiring up to three pickup attempts. |
| Large Package Surcharge | $160.00 – $235.00 | $205.00 – $297.50 | +26.6% to +28.1% | Applied to oversized shipments to commercial and residential addresses. |
| Prohibited Item Fee (General) | $150.00 | $300.00 | +100.0% | Fee for shipping prohibited items. |
| Over Maximum Limits Fee | $1,250.00 | $1,325.00 | +6.0% | Applied to packages exceeding maximum size or weight limits. |
| Rebill Fee | $21.00 | $23.50 | +11.9% | Fee for adjusting billing information after processing. |
| Residential Surcharge | $5.65 – $6.20 | $6.10 – $6.55 | +8.0% | Applied to residential deliveries (Ground and Air). |
| Saturday On-Call Stop Charge | $6.00 | $6.50 | +8.3% | For on-call pickups requested on Saturdays. |
| Same-Day Pickup Fee | $13.90 | $14.75 | +6.1% | Charged for same-day pickup requests. |
| Future-Day Pickup Fee | $8.50 | $9.05 | +6.5% | Fee for scheduling future pickup services. |
| Category A Dangerous Goods | $75.50 | $83.25 | +10.3% | Charged for high-risk hazardous materials. |
| Remote Area Surcharge | $14.15 – $42.15 | $15.35 – $45.50 | +7.5% | Applied to deliveries in remote U.S. locations. |
| Dry Ice Fee | $7.50 | $8.00 | +6.7% | Charged for shipments requiring dry ice for refrigeration. |
Specific Changes in Domestic UPS Surcharges (2024 vs. 2025)
UPS’s 2025 surcharge updates include significant increases for various services, from handling fees to residential delivery surcharges. Here’s a detailed breakdown of cost changes for each domestic surcharge category:1. Additional Handling (Weight, Zones 2-5)
Applied to packages exceeding UPS’s weight thresholds.2024 Rate: $34.50 – $41.50
2025 Rate: $43.50 – $52.75
Change: +26.1% to +27.2%
2. Additional Handling (Dimensions, Zones 2-5)
For packages exceeding length or girth limits.2024 Rate: $22.00 – $28.25
2025 Rate: $28.00 – $36.00
Change: +27.3%
3. Packaging (Zones 2-5)
Charged for using UPS-provided packaging materials.2024 Rate: $19.50 – $24.50
2025 Rate: $25.00 – $31.00
Change: +28.2%
4. Address Correction (Air and Ground)
Fee for correcting inaccurate or incomplete shipping addresses.2024 Rate: $22.00
2025 Rate: $23.50
Change: +6.8%
5. Chargeback for Consignee Billing Shipments
Charged when a consignee refuses to pay shipping costs, billing them back to the shipper.2024 Rate: $21.00
2025 Rate: $22.50
Change: +7.1%
6. Dangerous Goods (Air Accessible)
Extra charge for hazardous materials accessible during air travel.2024 Rate: $160.00
2025 Rate: $176.50
Change: +10.3%
7. Declared Value for Carriage
Cost for insuring shipments with declared value.2024 Rate: $1.45 per $100 (Min $4.35)
2025 Rate: $1.60 per $100 (Min $4.85)
Change: +10.3%
8. Delivery Area Surcharge (Ground Residential)
For deliveries to residential addresses.2024 Rate: $5.70
2025 Rate: $6.15
Change: +7.9%
9. UPS Returns (3 Pickup Attempts)
Charged for return shipments requiring up to three pickup attempts.2024 Rate: $8.90
2025 Rate: $13.50
Change: +51.7%
10. Large Package Surcharge (Zones 2-5)
For oversized shipments to commercial and residential addresses.2024 Rate: $160.00 – $235.00
2025 Rate: $205.00 – $297.50
Change: +28.1% to +26.6%
11. Prohibited Item Fee (General)
Fee for shipping prohibited items.2024 Rate: $150.00
2025 Rate: $300.00
Change: +100.0%
12. Over Maximum Limits Fee
Applied to packages exceeding maximum size or weight limits.2024 Rate: $1,250.00
2025 Rate: $1,325.00
Change: +6.0%
13. Rebill Fee
Fee for adjusting billing information after processing.2024 Rate: $21.00
2025 Rate: $23.50
Change: +11.9%
14. Residential Surcharge (Ground and Air)
Applied to residential deliveries.2024 Rate: $5.65 – $6.20
2025 Rate: $6.10 – $6.55
Change: +8.0%
15. Saturday On-Call Stop Charge
For on-call pickups requested on Saturdays.2024 Rate: $6.00
2025 Rate: $6.50
Change: +8.3%
16. Same-Day Pickup Fee
Charged for same-day pickup requests.2024 Rate: $13.90
2025 Rate: $14.75
Change: +6.1%
17. Future-Day Pickup Fee
Fee for scheduling future pickup services.2024 Rate: $8.50
2025 Rate: $9.05
Change: +6.5%
18. Category A Dangerous Goods
Charged for shipping high-risk hazardous materials classified under Category A.2024 Rate: $75.50
2025 Rate: $83.25
Change: +10.3%
19. Remote Area Surcharge
Applied to deliveries in remote U.S. locations.2024 Rate: $14.15 – $42.15
2025 Rate: $15.35 – $45.50
Change: +7.5%
20. Dry Ice Fee
Charged for shipments requiring dry ice for refrigeration.2024 Rate: $7.50
2025 Rate: $8.00
Change: +6.7%
UPS International Surcharge Changes (2024 vs. 2025)
| Service | 2024 Rate ($) | 2025 Rate ($) | Change (%) | Purpose |
| International Dangerous Goods (Accessible) | $235.00 | $256.75 | +9.2% | Charged for hazardous materials accessible during transit. |
| International Dangerous Goods (Inaccessible) | $118.50 | $130.75 | +10.3% | Charged for hazardous materials that are not accessible during transit. |
| Worldwide Express Freight (Accessible) | Greater of $231.50 or $1.26/lb | Greater of $247.50 or $1.35/lb | +7.1% | Fee for hazardous freight shipments accessible during transit. |
| Worldwide Express Freight (Inaccessible) | Greater of $118.50 or $1.26/lb | Greater of $130.75 or $1.35/lb | +10.3% | Fee for hazardous freight shipments not accessible during transit. |
| Remote Area Surcharge (International) | Greater of $53/shipment or $0.53/lb | Greater of $57/shipment or $0.57/lb | +7.5% | Applied to deliveries in remote international locations. |
| Remote Area Surcharge CWT (International) | Greater of $115/shipment or $1.15/lb | Greater of $122.50/shipment or $1.25/lb | +6.5% | A higher surcharge for heavier shipments to remote international locations. |
| Extended Area Surcharge | Greater of $53/shipment or $0.53/lb | Greater of $57/shipment or $0.57/lb | +7.5% | Charged for deliveries to extended service areas beyond major delivery zones. |
| Delivery Area Surcharge (Import Services) | $3.85 | $4.10 | +6.5% | Fee for imports delivered to challenging delivery areas. |
| Oversized Pallet Handling Surcharge | $1,375.00 | $1,375.00 | No Change | Applied to oversized pallets that exceed UPS’s handling limits. |
Specific Changes in International UPS Surcharges (2024 vs. 2025)
Here is a detailed breakdown of the cost changes for each international surcharge category:1. International Dangerous Goods (Small Package Accessible)
Applicable for hazardous materials that are accessible during transit in international small packages.2024 Rate: $235.00
2025 Rate: $256.75
Change: +9.2%
2. International Dangerous Goods (Small Package Inaccessible)
Charged for hazardous materials that are not accessible during transit in small packages.2024 Rate: $118.50
2025 Rate: $130.75
Change: +10.3%
3. Worldwide Express Freight Accessible
Fee for hazardous freight shipments that are accessible during international transit.2024 Rate: Greater of $231.50 or $1.26/lb
2025 Rate: Greater of $247.50 or $1.35/lb
Change: +7.1%
4. Worldwide Express Freight Inaccessible
Charged for hazardous freight shipments that are not accessible during international transit.2024 Rate: Greater of $118.50 or $1.26/lb
2025 Rate: Greater of $130.75 or $1.35/lb
Change: +10.3%
5. Remote Area Surcharge (International)
Applied to deliveries in remote international locations.6. Remote Area Surcharge CWT (International)
A higher surcharge for heavier shipments to remote international locations, calculated per hundredweight (CWT).2024 Rate: Greater of $115/shipment or $1.15/lb
2025 Rate: Greater of $122.50/shipment or $1.25/lb
Change: +6.5%
7. Extended Area Surcharge
Charged for shipments to extended service areas beyond major delivery zones.2024 Rate: Greater of $53/shipment or $0.53/lb
2025 Rate: Greater of $57/shipment or $0.57/lb
Change: +7.5%
8. Delivery Area Surcharge (Import Services)
Applied to imports delivered to areas requiring additional delivery effort.2024 Rate: $3.85
2025 Rate: $4.10
Change: +6.5%
9. Oversized Pallet Handling Surcharge
Applied to oversized pallets that exceed UPS’s size and weight limitations.2024 Rate: $1,375.00
2025 Rate: $1,375.00
Change: No Change
Analysis of Trends in UPS Surcharges Increases (2024 vs. 2025)
To identify patterns in surcharge adjustments, we can categorize and analyze the changes across different types of fees. Below is a summary of the trends and their implications:1. Significant Increases in Handling and Packaging Fees
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| Additional Handling (Weight, Zone 2) | 34.50 | 43.50 | 26.1% |
| Additional Handling (Dimensions, Zone 2) | 22.00 | 28.00 | 27.3% |
| Large Package Surcharge (Zone 2) | 160.00 | 205.00 | 28.1% |
2. Moderate Increases in Dangerous Goods Fees
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| Dangerous Goods (Air Accessible) | 160.00 | 176.50 | 10.3% |
| Dangerous Goods (Small Package Accessible) | Greater of $235 or $28.21/package | Greater of $256.75 or $30.75/package | 9.2% |
| Dangerous Goods (Ground) | 51.00 | 54.25 | 6.4% |
3. Steep Increase in UPS Returns Fees
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| UPS Returns (3 Pickup Attempts) | 8.90 | 13.50 | 51.7% |
4. Gradual Increases in Delivery Area and Remote Location Surcharges
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| Delivery Area Surcharge (Ground Residential) | 5.70 | 6.15 | 7.9% |
| Remote Area Surcharge (Alaska) | 40.50 | 43.25 | 6.8% |
| Remote Area Surcharge CWT (Alaska) | 115.00 | 122.50 | 6.5% |
5. Minimal Increases in Address and Billing Corrections
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| Address Correction (Air) | 22.00 | 23.50 | 6.8% |
| Rebill Fee | 21.00 | 23.50 | 11.9% |
6. Declared Value Fee Increases
| Charge Type | 2024 Rate ($) | 2025 Rate ($) | Change (%) |
| Declared Value for Carriage | $1.45 per $100 (Min $4.35) | $1.60 per $100 (Min $4.85) | 10.3% |
Summary of UPS Surcharges Trends
Handling and packaging fees saw some of the most significant increases, reflecting the growing costs of managing oversized and high-volume shipments. Delivery area and remote location surcharges also rose modestly, highlighting the importance of consolidating shipments and negotiating rates for regular routes. While this article focuses on surcharges introduced in UPS’s 2025 updates, demand surcharges are a critical cost factor for businesses shipping during peak seasons. These surcharges, announced separately in September, can significantly impact your bottom line. Visit our Guide to Demand Surcharges for UPS to learn how they work and how to prepare effectively. Additionally, meeting delivery deadlines is crucial during the holiday season to avoid delays and unnecessary fees. Check out our UPS holiday shipping deadlines to ensure your shipments arrive on time and avoid disruptions.7 Ways 3PL Center Helps Minimize UPS Surcharges for 2025
Navigating UPS’s updated surcharges can feel daunting, but at 3PL Center, our tailored solutions help businesses reduce shipping costs while maintaining exceptional service. Here’s how we make it happen:1. Smart Box Optimization Tailored to Your Goods
At 3PL Center, we handle diverse products like electric bikes, flat-pack furniture, cosmetics, and bulky items like BBQs and strollers. To keep costs down:Leverage Box Optimization Software: Our advanced WMS selects the right-sized box for your goods, minimizing dimensional weight charges for items like vitamins or cosmetics.
Disassemble Bulky Goods: For items like bikes or strollers, shipping parts (e.g., wheels detached) helps you avoid oversized package fees.
Flat-Pack Expertise: Already experts in flat-pack furniture, we extend this strategy to other bulky goods like outdoor furniture to reduce shipping dimensions.
2. Secure Packaging for Bulky and Heavy Items
For bulky products such as lawn mowers and outdoor furniture, we employ efficient and eco-friendly methods:Protective Padding: Use materials like biodegradable peanuts, foam, or bubble wrap to secure items without increasing box dimensions.
Specialized Equipment: Tools like forklift clamps and slip-sheet machines, paired with customized racking, ensure heavy goods are packaged efficiently.
Avoid Protrusions: Prevent irregular package fees by keeping parts like pedals or handles neatly within the box.
3. Address Validation for Accurate Deliveries
Our WMS includes a powerful address verification tool to reduce address correction surcharges:Pre-Ship Validation: Ensure every billing and shipping address is accurate, properly formatted, and error-free before shipping.
Shipping Instructions: Add labels like “This Side Up” or “Fragile” for delicate goods, ensuring proper handling during transit.
4. Freight Services for Oversized Shipments
For items like rugs or wall panels that exceed UPS size thresholds, we recommend smarter shipping methods:Switch to LTL Freight: Consolidate oversized shipments on pallets and ship via LTL (Less-than-Truckload) freight for cost efficiency.
5. Consolidation and Freight Solutions
For businesses shipping high volumes of smaller goods like vitamins or cosmetics, we focus on cost-effective consolidation:Combine Shipments: Reduce handling fees by consolidating multiple packages into a single shipment.
Palletized Shipping: Encourage palletizing high-volume orders to minimize costs associated with individual parcels.
6. Tailored Returns Management
Rising UPS returns fees make efficient management more important than ever:Streamlined Handling: Group return shipments and schedule pickups efficiently to avoid multiple attempts.
Drop-Off Solutions: For e-commerce clients, encourage the use of UPS drop-off points to save on pickup fees.
7. 3PL Center’s Value
Partnering with 3PL Center means more than just logistics—it means savings and peace of mind:High-Value Shipping Expertise: Handle fragile or high-value, oversized goods like electric bikes or flat-pack furniture with specialized equipment and UPS-approved packaging.
Plan Ahead and Save on 2025 UPS Surcharges
The 2025 UPS surcharge changes will have a significant impact on shipping costs, especially for businesses handling oversized, heavy, or return-heavy shipments. However, with the right strategies, these challenges can become opportunities to optimize your logistics. Contact us today to learn how we can help you stay competitive in 2025 and beyond. GET A QUOTEUPS Surcharges FAQs
What is the difference between a surcharge and a value-added service?
Surcharges are additional fees applied to shipments under specific conditions, such as handling oversized items or delivering to remote areas. Value-added services, on the other hand, are optional features or upgrades like declared value coverage or signature confirmation, designed to enhance the shipping process.How do I calculate the dimensional weight of my package?
To calculate dimensional weight, multiply the package’s length, width, and height (in inches) and divide by the Dimensional Factor (typically 139 for UPS). If the dimensional weight is greater than the actual weight, UPS will charge based on the higher value. Using a tool like 3PL Center’s box optimization software can help minimize dimensional weight fees.Can I combine multiple shipments to save on UPS surcharges?
Yes, combining smaller shipments into one larger shipment can help reduce handling fees and surcharges. For oversized items, palletizing shipments and utilizing freight options, like LTL shipping, can also lower costs significantly.Are all handling surcharges avoidable?
Not all surcharges can be avoided, but many can be minimized with proper preparation. Using standard packaging, maintaining accurate shipment details, and leveraging tools like box optimization can significantly reduce fees.What types of packaging materials are UPS-approved?
UPS generally recommends sturdy, regular cardboard boxes, standard tape, and adequate internal padding. Avoid using materials like metal or wooden crates unless necessary, as these may incur additional handling fees.Can 3PL Center integrate with my existing e-commerce platform?
Yes, 3PL Center integrates with most major e-commerce platforms, including Shopify, WooCommerce, and Magento. This ensures seamless order processing and inventory management for your business. GET A QUOTELatest Posts:
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