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UPS Announces New Rate Changes and Surcharge Increases Effective June 2, 2025
These increases raise the stakes for shippers—especially those with high-zone, oversized, or rural deliveries. Notably, the updated Large Package Surcharge now mirrors FedEx’s charges for Zones 7–8, indicating further price convergence between the two major carriers.
What’s Changing:
- Zone Realignment: The applicable Zone will change for certain origin/destination ZIP code pairs. Updated zone charts will be available on UPS.com starting June 2.
- Higher Surcharges for Zones 7+: Additional Handling and Large Package Surcharges for Zones 7 and above are increasing and are now comparable with FedEx’s highest zone rates:
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- Additional Handling – Weight: $55.00
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- Additional Handling – Dimensions (Length, Girth, Width): $38.00
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- Additional Handling – Packaging/Other: $31.50
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- Large Package – Commercial: $260.00
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- Large Package – Residential: $305.00
- Remote Area Surcharge Extended to Ground Saver: Ground Saver packages shipped to remote ZIP codes in the contiguous 48 states will now incur a Remote Area Surcharge.
- New Shipping Charge Correction Audit Fee: UPS will apply the greater of:
- $1.65 per corrected package, or
- 12% of total shipping charge corrections per invoice period.
- Over Maximum Limits Fee Increase: This fee will rise significantly to $1,775 per package.
Link to the full announcement: UPS Shipping Costs and Rates
FedEx Comparison: A Closer Look at Price Convergence
For additional context, UPS surcharges for Additional Handling and Large Packages (AHS/LPS) previously sat between FedEx’s Zone 5–6 and Zone 7–8 rates. With this update, UPS has aligned its rates to match FedEx’s higher Zone 7–8 charges, signaling continued price convergence between the two major carriers.
For example:
- FedEx Oversize – Zones 5–6: $240
- FedEx Oversize – Zones 7–8: $260
- Previous UPS Large Package (Zone 5+): $250
- New UPS Large Package (Zone 7+): $260
This shift makes it even more important for shippers to monitor rate changes across carriers and renegotiate contracts accordingly.
