February 2026 brings another round of carrier pricing adjustments that shippers need to account for, and this month, UPS is making a structural change worth paying close attention to.
FedEx has updated its demand surcharge schedules for U.S. international services, while UPS has refreshed its tariff guides and introduced zone-based pricing for Large Package and Additional Handling surcharges. These aren’t just routine rate bumps. Here’s what changed and what it means for your shipping costs.
FedEx Shipping Surcharge Updates — February 2026
U.S. International Demand Surcharge Update
- Effective Date: February 2, 2026
- Details: FedEx has updated its demand surcharge schedules for U.S. international services, including both export and import shipments. Unlike standard annual rate increases, demand surcharges are variable fees that carriers adjust based on capacity constraints, volume fluctuations, and market conditions.
- Why It Matters: Demand surcharges can shift at any point during the year, making them difficult to predict and budget for. If you’re shipping internationally through FedEx, even small surcharge adjustments on high-volume lanes can add up quickly. Review the updated schedules and factor these changes into your cost projections now.
Full details are available on FedEx’s official demand surcharge pages for US exports and US imports.
UPS Shipping Surcharge Updates — Effective January 26, 2026
Updated Tariff and Rate & Service Guides
- Effective Date: January 26, 2026
- Details: UPS has updated its Tariff/Terms and Conditions of Service along with both the Daily and Retail Rate and Service Guides.
- Why It Matters: Tariff updates can include changes to billing rules, service terms, and fee structures that go beyond headline rate increases. Even minor language adjustments can affect how charges are assessed. Shippers should review the updated guides to ensure their billing aligns with the new terms.
Full details are available on the UPS shipping costs and rates page.
Zone-Based Pricing for Large Package and Additional Handling Surcharges
- Effective Date: January 26, 2026
- Details: UPS is introducing a significant structural change to how Large Package Surcharges (LPS) and Additional Handling Charges (AHC) are assessed. Both surcharges now follow a zone-based pricing model, meaning costs increase with shipping distance.
Large Package Surcharge (LPS) now applies to domestic packages that meet any of the following criteria, in addition to existing length and girth thresholds:
- Cubic size greater than 17,280 cubic inches
- Actual weight over 110 lbs
LPS rates now range by zone:
- Commercial: $219.50 (Zone 2) up to $286.00 (Zone 7+)
- Residential: $254.50 (Zone 2) up to $331.00 (Zone 7+)
Additional Handling Charge (AHC) now applies to domestic packages with a cubic size greater than 10,368 cubic inches, in addition to existing weight, length, width, and packaging triggers. AHC rates now range from $26.75 to $58.75 depending on zone and trigger type, with weight-based triggers carrying the highest fees.
- Why It Matters: This is more than a rate increase; it’s a structural shift in how UPS prices oversized and hard-to-handle packages. Previously, these surcharges were applied as flat fees regardless of destination. Now, the same oversized package costs significantly more when shipped to farther zones. Shippers moving bulky freight across long distances will feel the biggest impact, and businesses that haven’t modeled zone-by-zone surcharge exposure could be caught off guard.
How To Navigate UPS and FedEx Surcharge Updates
UPS and FedEx’s updated surcharges mean that February is a good time to take a closer look at your parcel spend and identify where these changes hit hardest.
Here’s where to start:
- Review your shipping profile to identify which packages trigger LPS or AHC thresholds
- Model the zone-by-zone impact on your highest-volume lanes
- Audit package dimensions and explore right-sizing opportunities to avoid triggering cubic volume thresholds
- Factor updated FedEx demand surcharges into your international shipping cost projections
With Reveel, shippers can stay ahead of carrier pricing changes with real-time cost visibility and meticulous surcharge monitoring. If you’re not sure how these updates affect your bottom line, schedule a demo and we’ll help you model the impact.