Shipping costs are constantly evolving, and staying on top of the latest surcharges from major carriers like UPS and FedEx can make the difference between staying within budget and facing unexpected expenses. 

From fuel adjustments and peak season fees to new dimensional weight charges and delivery area surcharges, carriers regularly introduce or modify fees that directly impact your bottom line. 

Here’s what you need to know about UPS and FedEx shipping surcharges in July.

July 2025 FedEx Surcharges

U.S. Peak Demand Surcharges

    • Effective Date: September 29 at the earliest, October 27 for all shippers

    • Details: High-volume periods trigger temporary surcharge increases that typically hit your bottom line between September and January. Similarly to last year, FedEx’s 2025 peak demand surcharge increases range from 5-9%, year over year. 

    • Why It Matters: Peak season surcharges can dramatically impact shipping budgets, often adding 20-50% (or more) to standard rates during high-demand periods. It’s crucial for shippers to stay informed about peak season surcharges to avoid budget surprises, plan inventory timing strategically, and potentially negotiate better rates or explore alternative shipping options before peak periods hit.

Learn more about FedEx’s Demand surcharges, including Residential delivery charges, here.

Additional Handling Surcharges and One Rate Changes

    • Details: FedEx will lower the Additional Handling weight threshold and adjust various surcharges, including Oversize and Unauthorized Package Charges. FedEx One Rate will also change.

    • Why It Matters: Lower weight thresholds and increased charges can restrict shipping operations for businesses.

July 2025 UPS Surcharges

Large Package and Additional Handling Surcharges

    • Details: UPS will apply Large Package and Additional Handling Surcharges based on cubic size rather than length plus girth. Zone-based LPS will also increase.

    • Why It Matters: Measuring by cubic size can impose further restrictions on shippers, which further demonstrates the need for package optimization.

Fuel Surcharges

    • Details: UPS imposes fuel surcharges based on the National U.S. Average On-Highway Diesel Fuel Price. Effective July 14, shippers can expect the following fuel surcharges:

       

        • Domestic Ground Surcharge: 20.5%

        • Domestic Air Surcharge: 19.5%

        • International Air Export Surcharge: 24.25%

        • International Air Import Surcharge: 28%

        • International Ground Export Import Surcharge: 21%

    • Why It Matters: Fuel surcharges are one of the most volatile components of shipping costs and are often adjusted on a weekly basis. Because they apply to every package shipped, fuel surcharges directly impact your bottom line.

Stay Ahead With Reveel

Reveel’s Surcharge Watch series cuts through the complexity by delivering timely updates on the latest carrier fee changes, helping you anticipate cost fluctuations, adjust your shipping strategy, and make informed decisions about your logistics operations. 

Whether you’re a small business owner shipping a few packages a week or a logistics manager overseeing thousands of shipments, staying informed about surcharge changes is essential for maintaining predictable shipping costs and protecting your margins. Subscribe to our email list below to stay up to date on all upcoming shipping surcharges.

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