UPS shippers, brace yourselves, rates are climbing again.
UPS Rate and Surcharge Updates – May to August 2025
Effective May 26, 2025
Paper Commercial Invoice Services:
- A $12.00 surcharge will apply per shipment if a commercial invoice is not provided digitally using UPS Paperless® Invoice.
- +1% increase on Ground and Domestic Air FSC
- Minimal value left in legacy FSC discounts (e.g., 30% off doesn’t mean much after so many cumulative hikes)
- The list of ZIP codes subject to Area Surcharges will be updated.
- New $12.00 ICOD fee will apply to U.S. consignees at delivery.
- Fee applies alongside unpaid duties, taxes, and other shipment fees.
- To avoid the fee, consignees can pay electronically via UPS International Pre Payment Application (IPPA):
- Through shipment payment notifications (requires shipper to provide recipient info)
- Via UPS.com tracking page link
- Zone chart changes for certain origin/destination ZIP code pairs.
- Additional Handling Charges (Zones 7+):
- Weight: $55.00
- Dimensions: $38.00
- Packaging/Other: $31.50
- Large Package Surcharge:
- Commercial: $260.00
- Residential: $305.00
- Remote Area Surcharge will apply to Ground Saver packages in the contiguous U.S.
- Shipping Charge Correction Audit Fee:
- Greater of $1.65 per package or 12% of corrections in invoice period
- Over Maximum Limits fee: $1,775
- LPS no longer based on length + girth.
- Now applies to:
- Cubic size > 17,280 cubic inches
- Weight > 110 lbs
- Commercial Rates:
- Zone 2: $205.00
- Zone 3-4: $225.00
- Zone 5-6: $250.00
- Zone 7+: $260.00
- Residential Rates:
- Zone 2: $240.00
- Zone 3-4: $260.00
- Zone 5-6: $297.50
- Zone 7+: $305.00
- AHC no longer based on length + girth.
- Applies to cubic size > 8,640 cubic inches.
- Rates by Zone:
- Audit invoices regularly to catch unexpected charges early.
- Explore alternative carriers or regional options where cost-effective.
- Adapt your packaging strategy to avoid cubic and handling thresholds.
- Use UPS Paperless® Invoice to avoid new documentation fees.
- Renegotiate your UPS contract if you’re eligible
- Explore alternative carriers for better terms or service
- Put your shipping volume out to bid
- Prioritize cost control in your parcel spend strategy
- Engage logistics consultants to help benchmark and optimize your shipping strategy and data-driven negotiation support
UPS is implementing its eighth Fuel Surcharge (FSC) increase in less than 18 months, this time with just five days’ notice.
Details UPS Domestic Fuel Flyer
Effective June 1, 2025
Delivery Area Surcharges:
Source: Current list of Area Surcharge ZIP codes
Effective June 2, 2025
International Collect on Delivery (ICOD) Fee:
Other Rate Changes (Effective June 2):
Effective August 17, 2025
Domestic Large Package Surcharge (LPS):
Domestic Additional Handling Charge (AHC):
| Type | Zone 2 | Zone 3-4 | Zone 5-6 | Zone 7+ |
|---|---|---|---|---|
| Weight | $43.50 | $47.50 | $52.75 | $55.00 |
| Cubic Size | $28.00 | $31.00 | $36.00 | $38.00 |
| Length | $28.00 | $31.00 | $36.00 | $38.00 |
| Width | $28.00 | $31.00 | $36.00 | $38.00 |
| Packaging | $25.00 | $29.00 | $31.00 | $31.50 |
Source: New Rates Announced
Impact on Parcel Shippers
These changes represent a significant increase in cost for many shippers, especially those moving large, heavy, or remote-bound packages. With tighter rules, updated zones, and new surcharge logic, even routine shipments may now face unexpected fees.
These recurring increases, now totaling over 5% cumulatively in under a year and a half, are part of a broader strategy to boost revenue per piece (RPP) and satisfy shareholder expectations, even as competition heats up in the parcel shipping market.
What Should Shippers Do?
Now is the time to get proactive about controlling parcel spend before these changes take a bite out of your bottom line.
As the shipping landscape continues to evolve, staying proactive is essential. Partnering with logistics consultants can help identify cost-saving opportunities and build a more resilient shipping strategy.
Need help navigating rate changes like these? Our team at ebb Logistics specializes in helping businesses optimize their parcel shipping strategies in an increasingly complex environment.
Contact Us Today!