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GAIN CONSULTING

FedEx and UPS Dimensional Surcharge Updates

  • Kelsea Ansfield
  • 6 days ago
  • 3 min read

Major parcel carriers FedEx and UPS have rolled out significant changes to their surcharge assessments for large and bulky packages this month. These updates, effective January 12 for FedEx and January 26 for UPS, introduce cubic volume thresholds alongside existing length, girth, and weight criteria. The result? More shipments — particularly lightweight but space-hogging ones — could now trigger Additional Handling or Oversize/Large Package surcharges, driving up landed costs for shippers.


Parcel pricing experts note that businesses shipping larger, low-density packages stand to see the biggest impact, with some packages shifting from a modest handling fee (around $30–$40) to a much steeper oversize charge (up to $255–$331 or more, depending on zone and carrier).


Key Changes at a Glance

  • FedEx (Effective January 12, 2026):

    • Additional Handling Surcharge – Dimension: Now applies to any package exceeding 10,368 cubic inches (length × width × height in inches), in addition to prior criteria.

    • Oversize Charge: Triggers on packages over 17,280 cubic inchesor exceeding 110 pounds, stacking on existing length/girth rules.

  • UPS (Effective January 26, 2026):

    • Domestic Additional Handling Charge (Cubic Size): Applies to packages over 10,368 cubic inches.

    • Domestic Large Package Surcharge: Applies to packages over 17,280 cubic inchesor exceeding 110 pounds (commercial and residential rates vary).


These cubic thresholds align closely between the two carriers, creating a more uniform (and stricter) standard for bulky shipments.


Comparable Fees for Large Packages (2026)

Carrier

Fee Type

Low-End Charge

High-End Charge

Notes

FedEx

Additional Handling Surcharge – Dimension

$29.50

$40.75

Varies by zone/distance

FedEx

Oversize Charge

$255

$330

Varies by zone/distance

UPS

Domestic Additional Handling Charge (Cubic Size)

$30

$40.50

Varies by zone/distance

UPS

Domestic Large Package Surcharge (Commercial)

$219.50

$286

Varies by zone/distance

UPS

Domestic Large Package Surcharge (Residential)

$254.50

$331

Varies by zone/distance

Source: FedEx and UPS official updates (charges vary based on shipping distance/zone)


Real-World Impact Examples

Previously, a package measuring 46 × 24 × 16 inches (18,624 cubic inches) might have avoided an oversize fee under length/girth-only rules. Now, it exceeds the 17,280 cubic inch threshold and incurs the full oversize/large package surcharge — potentially adding hundreds of dollars per shipment.


Lightweight, high-volume items (e.g., e-commerce apparel boxes, electronics in oversized packaging, or promotional materials) are especially vulnerable. Shippers could see packages "graduate" from a ~$30 handling fee to a $200+ oversize charge, significantly eroding margins.


Strategic Steps for Shippers

These changes highlight the carriers' continued push to manage handling costs for bulky/low-density freight. To mitigate the impact:

  • Audit Your Package Mix: Calculate cubic volume for your top SKUs. Identify items at risk of new surcharges and prioritize redesigns.

  • Optimize Packaging: Switch to slimmer boxes, right-size cartons, or denser packing materials to stay under thresholds where possible.

  • Reevaluate Mode and Carrier Choices: Explore alternatives like regional carriers, LTL for heavier/bulkier loads, or intermodal options to bypass parcel surcharges.

  • Negotiate and Benchmark: Use these updates as leverage in 2026 contract renewals. Track actual vs. dimensional weight and push for caps or discounts on accessorials.

  • Model the Cost Increase: Run scenarios with your historical data to forecast budget impacts — don't rely solely on the carriers' headline GRI (around 5.9% for 2026).


At Gain Consulting, we specialize in helping U.S. shippers analyze parcel spend, benchmark against carrier surcharges, and implement cost-control strategies amid evolving pricing rules. Our team reviews your shipment data, identifies surcharge exposure, and designs optimization plans — from packaging tweaks to multi-carrier sourcing — to keep transportation expenses in check.


These January updates are just the latest in a series of accessorial adjustments. Stay proactive to avoid surprises on your next invoice.


For a free parcel audit or guidance on navigating these changes, reach out to the Gain Consulting team today.


Gain Consulting LLC – Optimizing Parcel Strategies in a Changing Carrier Landscape

 
 
 
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