UPS vs. FedEx Surcharges 2025: What Changed and What’s Coming in 2026

Think you can keep up with UPS and FedEx rate changes in 2025? Good luck. 

This year has been a master class in rapid-fire adjustments — with both carriers trading blows, matching fees, and introducing new criteria that could leave shippers scrambling. 

Before we dive into what changed, here’s a translation guide. While UPS and FedEx generally offer comparable services and surcharges, they often use different terminology. The table below shows which terms are equivalent between the two carriers. 

UPS vs. FedEx Terminology 

Note: Ground Saver and Ground Economy are both considered “Ground Deferred” services. 

This Year’s Key Changes 

1. Handling Charges Alignment

UPS matched FedEx by aligning handling charges to zones 5-6 and 7-8, instead of their old 5-8 category. Both carriers bumped prices for long zones. 

 Result: Match.

2. Oversize/Large Package Fees

FedEx now charges the same Oversize fee for all domestic services — only zones matter. 

UPS still splits Large Package Surcharge (LPS) into Commercial and Residential, with Commercial significantly cheaper. 

Result: UPS Commercial LPS is cheaper; UPS Residential LPS matches all FedEx Oversize.

3. Over Max Surcharge Hike

UPS jumped from $1,325 to $1,775 on June 2. FedEx matched on July 14. 

Result: Match.

4. New Weight-Based Large Package Surcharge Criteria (UPS)

Packages weighing over 110 pounds now trigger LPS. FedEx has no weight-based Oversize rule. 

Result: Advantage FedEx  

5. Dimensional Criteria Shift — With a Delay (UPS)

UPS announced a switch from Length+Girth to Cubic Size (volume) for calculating (Additional Handling Surcharge) AHS & Large Package Surcharge (LPS), along with adding Weight criteria and removing the old Length+Girth rules entirely. Originally scheduled for August 17, 2025, these changes are now delayed until on or after December 22, 2025. 

Both carriers will continue using Length+Girth for AHS and LPS charges. UPS will still move forward with the other changes that were scheduled for August 17th, which includes the below change to dimensional rounding 

Result: Different approaches, delayed rollout.

6. Fractional Inch Rounding

As of August 18, both carriers will round up to the next whole inch. Your 11.1-inch box? It’s now 12 inches. 

Here is an example: That box you like to ship via Ground Saver?  

Old billing rule: 

Dimensions = 16.1x12.1x8.1 

Volume = 1,536 cubic inches (Volume < 1,728 cubic inches = waiver on dimensional billing per your agreement) 

Actual weight = 5lbs 

Billed weight = 5lbs 

New billing rule: 

Dimensions = 17x13x9 

Volume = 1,989 cubic inches (Volume > 1,728 cubic inches = list DIM factor of 139 per your agreement) 

Actual weight = 5lbs 

Billed weight = 15lbs 

Per your contract: 

Ground Saver 9lbs or less = 41% discount 

Ground Saver 10lbs or more = 4% discount 

Avg cost at 5lbs (zones 2-8) = $10.91 

Avg cost at 15lbs (zones 2-8) = $30.46 

P.S. UPS Ground Saver list prices are 36% more than UPS Ground prices at 10 lbs and up! 

Result: Match.

7. Remote Area Surcharge on Deferred Ground

UPS added this for Ground Saver on June 2. FedEx hasn’t matched it for Ground Economy — yet. But certain DAS Ext ZIP codes with FedEx are Remote Area ZIP codes with UPS (nearly double the price). 

This means that certain zip codes for Ground Saver have increased from $4.90 to $15.35 in less than a year. That's a 313% increase. 

Result: UPS-only — for now. 

By the Numbers — Prices as of August 17, 2025 

Looking closely at the surcharge table, a few trends stand out: 

• UPS holds a clear advantage on Commercial Oversize/Large Package fees. In zones 2, 3-4, 5-6, and 7-8, UPS rates are 13-16% lower than FedEx. For example, Zone 5-6 Oversize Commercial is $250 with UPS versus $297.50 at FedEx — a 16% gap that matters for high-volume shippers. 

• Residential Oversize fees are now identical.  

• Over Max/Unauthorized packages remain extremely costly. Both carriers charge $1,775 for Ground, and while FedEx technically doesn’t apply this surcharge to Air, those packages are instead billed as Express Freight — which still carries a steep price tag. 

In short: UPS offers savings on Commercial Oversize, while Over Max packages remain costly with both carriers. 

What to Watch for in 2026 

Don’t expect this game of leapfrog to slow down. Likely moves on the horizon include: 

• UPS raising LPS Commercial to match Residential. 

• FedEx adding a 110-lb weight-based Oversize rule. 

• FedEx switching to cubic size calculations. 

• FedEx adding Remote Area fees to Ground Economy. 

Shippers should prepare now for another round of adjustments. 

Other Notable Trends 

Beyond headline surcharges, both carriers continue to tweak the fine print in ways that add cost and complexity: 

• UPS introduced a Payment Processing Fee and raised its Shipping Charge Correction audit fee. 

• Both carriers keep fuel surcharges north of 20%, despite lower pump prices — and now apply those fuel charges to pick up fees and even address corrections. 

• DAS ZIP codes continue to change, reshaping delivery area surcharges without much notice. 

• FedEx made quiet adjustments to One Rate and international surcharges. 

These aren’t always front-page changes, but they directly hit margins. 

Bottom Line for Shippers 

The 2025 rate cycle has been a blur of matching moves, surprise rule changes, and delays. If you’re not watching effective dates and surcharge definitions closely, you could miss a change that impacts your bottom line. 

Our advice: Model your shipping profile against these evolving rules before they quietly erode your margins. In 2025, standing still means falling behind. 

The 2026 GRIs are coming—and the true cost lies in the fine print. Sign up now to receive TransImpact’s expert analysis as soon as each GRI is released.