When Halloween goods start to materialize,
You know peak season’s drawing near, it’s no surprise.
.png?width=624&height=624&name=UPS%202025%20Peak%20Season%20Surcharges%20Chart%20(1).png)
UPS released its 2025 peak (demand) surcharges a little late this year and only provided them less than one month before the surcharges go into effect on September 28, 2025.
These fees will be added to the standard base rates, meaning shippers who aren’t prepared may see significant cost increases.
Why UPS is raising the bar again
Several dynamics are driving the steeper surcharges this year:
Rising costs & network stress — Labor, fuel, facility, and equipment costs remain elevated. UPS is using surcharges to offset the incremental burden of holiday volume surges.
Compressed announcement timing — In 2024, UPS gave shippers a month’s notice (announcing in July). In contrast, this year’s schedule dropped just weeks before implementation, giving logistics teams less runway to react.
Stricter penalties for high-volume surges — UPS is doubling down on its “Peaking Factor” concept, which penalizes shippers whose weekly volume spikes well above their baseline.
Greater focus on imports/exports — UPS has also applied new seasonal surcharges on U.S. import and export routes to reflect global logistics pressures.
In short: The 2025 structure is designed to extract more per package during high-stress windows, especially for bulky or high-volume shipments.
2025 UPS peak season surcharges:
What's new
To manage the anticipated influx of holiday shipments, UPS has unveiled a comprehensive suite of peak season surcharges that will take effect from September 28th, 2025, through January 17th, 2025. These fees vary in magnitude depending on the service and timing, with the highest charges being applied during the busiest period between November 23rd and December 27th.
Additional handling surcharge
For U.S. domestic, import, and export shipments, UPS will impose an Additional Handling Surcharge ranging from $8.25 to $10.80 per package.
Large package surcharge
Packages that exceed UPS' size limits will incur a Large Package Surcharge of $90.50 to $107 per shipment.
Over maximum limits surcharge
Shipments that exceed UPS' maximum weight and size restrictions will be subject to a surcharge of $485 to $540 per package.
Demand surcharges
UPS will also implement Demand Surcharges on its Ground Residential, Air, and SurePost services, with fees ranging from $0.40 to $2.05 per package. For customers who exceed a weekly volume threshold of 20,000 packages, a tiered Demand Surcharge of $0.40 to $8.75 will apply.
International surcharges
UPS also announced international surcharges on import routes via per-pound or per-package fees.
Additional note: Relative to 2024, the increases are steeper in many categories: oversized surcharges see double-digit growth, and residential/air service surcharges see more aggressive tiering for high-volume shippers.
What this means for your business
The 2025 surcharge structure amplifies several risk areas for shippers, especially during the holiday rush:
Bulky, oversized, or irregular shipments will face especially heavy surcharges (Additional Handling, Large Package, Over Maximum). Every inch, pound, or packaging inefficiency can now eat into margins.
Residential delivery & light parcels are under more pressure than before. Even small per-unit increases (e.g. $0.40 → $0.60) can compound across thousands of orders.
Peaking Factor penalties can be catastrophic. If your weekly volume exceeds your baseline by large margins, you may find yourself paying $5 - $8+ extra per package. That adds up fast.
Tight timeline to adjust — with the late announcement, many shippers are scrambling to reforecast, renegotiate, or retool before the surcharges hit.
International flows are under stress — import/export surcharges add another layer of unpredictability, especially if your supply chain spans global routes.
In effect: the base cost of doing business in Q4 just got a lot higher.
How shipping software helps you weather the surcharge storm
Given how high the stakes are in 2025, using powerful shipping software is no longer optional. It’s a strategic necessity.
Here’s how a platform like Zenventory can help you save during peak season.
Key Capabilities & Cost-Saving Levers
Rate shopping across carriers and services
Zenventory offers built-in rate shopping so you can compare UPS, USPS, FedEx, Amazon, etc., side by side and choose the cheapest acceptable option. No more copying and pasting or guessing.
In periods of surcharge volatility, being able to pivot to a lower-cost alternative is critical.
Access to discounted rates
Zenventory’s shipping tools grants access to deeply discounted shipping rates. Those discount margins can offset a chunk of the surcharge burden.
Batch shipping and automation
By batching orders and automating processes, your team saves labor hours and reduces errors. This improves throughput and helps avoid surcharge-related mistakes (mis-classified package sizes, late shipments).
In peak season, speed and accuracy are survival metrics.
Address validation & error prevention
Zenventory automatically validates addresses, reducing failed deliveries, chargebacks, or reshipments ... all of which become costlier when peak surcharges apply.
Unified interface & visibility
Instead of juggling multiple systems (inventory, marketplaces, shipping tools), everything lives in one dashboard. That real-time view helps you see where surcharge risks are accumulating (by carrier, SKU, or zone) and pivot proactively.
Support for 3PLs & multi-client setups
Zenventory was built for 3PLs. Zenventory supports multi-client inventory and lets you route orders optimally across fulfillment centers, minimizing cross-country surcharges or peak zone impacts.
Get ZenShip FREE with any Zenventory plan!
For all Zenventory users, Zenventory’s shipping module (ZenShip) comes with no extra hidden fees, enabling experimentation without sunk cost.
Final thoughts
Even experienced shippers agree: 2025 is shaping up to be one of the toughest peak seasons yet. With UPS releasing surcharges late, enforcing steeper penalties for volume spikes, and piling extra costs on residential and oversized shipments, the stakes are higher than ever.
The good news? You don’t have to absorb it all. A shipping software like Zenventory can help you fight back, saving up to 10 - 20% on shipping costs through built-in discounted rates and smarter carrier choices.
See it in action. Click here to book a demo today!
.png)