Peak season is here, and with it come the extra costs that UPS and FedEx roll out each year to offset holiday demand. For 2025–2026, both carriers have announced new surcharges that will significantly impact shippers’ budgets during the busiest time of year.
On the surface, these charges look similar. But dig deeper in our comparison report, and you’ll see that the carriers are taking very different approaches—differences that could have a major effect on your bottom line.
UPS applies tiered “Peaking Factor” surcharges that only hit volumes above your baseline. This creates a more gradual increase, giving shippers an incentive to manage volume spikes.
FedEx, on the other hand, excludes Ground Economy from peaking tiers and instead applies a flat per-package surcharge. That fee is often higher than UPS’s comparable charges, creating a larger budget impact right away.
So which carrier will cost you more? That depends on your volumes, services, and strategy.
Our latest report breaks it all down with side-by-side comparisons, showing how these surcharges stack up—and what they mean for your business during peak season.
Don’t let hidden charges surprise you this holiday season. See the numbers for yourself, and start planning now to minimize the impact.