OnTrac Updates AHS and LPS Surcharge Rates

Regional parcel carriers are adjusting their pricing structures—and your shipping budget may be at risk.

OnTrac has announced updated Additional Handling Surcharge (AHS) and Large Package Surcharge (LPS) rates, effective March 7, 2026. For shippers who rely on OnTrac’s regional network strength, these zone-based increases demand immediate attention and proactive cost management.

The Bottom Line: Surcharges Are Rising Across All Zones

OnTrac’s latest rate sheet shows significant increases in two critical accessorial charges. Unlike base-rate adjustments, these surcharges disproportionately affect specific parcel profiles—oversized shipments, irregular packaging, and items requiring special handling.

Here’s what you’ll pay starting March 7:

Zone 2
Additional Handling: $32.00 | Large Package: $265.00

Zone 3-4
Additional Handling: $36.00 | Large Package: $275.00

Zone 5-6
Additional Handling: $40.00 | Large Package: $315.00

Zone 7-8
Additional Handling: $42.00 | Large Package: $325.00

OnTrac Rates

These adjustments follow OnTrac’s January 3, 2026, General Rate Increase, creating a compounding effect on total landed costs for many shippers.

Why This Update Demands Your Attention Now

Accessorial charges often hide in plain sight. While base rates get the headlines, surcharges like AHS and LPS can silently erode margins—especially when they increase by zone and apply to a significant portion of your parcel mix.

Consider the real-world impact: If 15% of your OnTrac volume triggers additional handling charges and you ship primarily to Zones 5-8, you’re looking at $40-42 per affected package. For high-volume shippers, this translates to substantial annual cost increases that won’t appear in your base rate analysis.

This pricing action also reflects a broader industry pattern. UPS, USPS, and other carriers have rolled out mid-year rate changes and expanded surcharge rules throughout 2025 and into 2026. Parcel pricing is becoming more complex, more frequent, and more surgical in targeting specific shipment characteristics.

Three Steps to Protect Your Parcel Budget

1. Audit Your Surcharge Exposure
Pull your current OnTrac data and identify what percentage of shipments incur AHS or LPS charges today. Break this down by zone to understand where you’re most vulnerable to the March increases.

2. Model Your New Landed Costs
Run scenarios using the updated surcharge rates. Compare total costs across zones and weight breaks to identify opportunities to optimize routing or packaging to keep parcels below surcharge thresholds.

3. Reassess Your Carrier Mix Strategy
OnTrac offers compelling transit advantages for regional shipments, but these surcharge changes may shift the cost equation for certain lanes or parcel profiles. Now is the time to benchmark against alternative carriers and confirm that your routing logic continues to deliver optimal value.

The Bigger Picture: Parcel Pricing Is Accelerating

We’re seeing a fundamental shift in how carriers approach pricing. Gone are the days of predictable annual GRIs. Today’s environment features:

• Multiple rate adjustments per year
• Increasingly granular zone-based surcharges
• Expanded accessorial definitions that capture more shipments
• Less transparency in the total cost impact

Shippers who treat carrier rate changes as one-time events—rather than continuous strategic inputs—will consistently overpay and underperform on margin targets.

How Ebb Logistics Helps You Stay Ahead

Our parcel consulting team specializes in turning carrier rate complexity into a competitive advantage. We help you:

• Quantify the impact of surcharge changes on your actual invoice data
• Identify optimization opportunities through packaging, routing, and dimensional adjustments
• Benchmark your rates against market standards and carrier alternatives
• Support contract negotiations with data-driven recommendations and leverage points

The OnTrac surcharge update is more than a pricing announcement; it’s a signal that proactive parcel management has never been more critical.

Don’t wait until March 7 to understand the impact. Contact ebb Logistics today to analyze how these changes affect your shipping costs and to build a parcel strategy that protects your bottom line in an increasingly dynamic pricing environment.

Contact ebb Logistics!