UPS Surcharges for 2025 Holiday Season: Navigating Rising Costs in Q4

At Gain Consulting, we’re committed to helping businesses stay ahead of logistics challenges, especially during the critical Q4 holiday season. A recent announcement from UPS, reported in Supply Chain Dive on September 19, 2025, details new surcharges for U.S. import and export services starting in September and October 2025.

These fees, active through January 17, 2026, will add to the pricing pressures shippers face during the peak holiday shipping period. Here’s a breakdown of the surcharges, their implications, and how Gain Consulting can help you manage rising costs effectively.

UPS’s New Surcharges: What You Need to Know

UPS has introduced additional surcharges for various U.S. import and export services, effective during the 2025 holiday season. These fees, assessed on a per-pound or per-package basis and subject to UPS’s fuel surcharge, target specific services and regions. Below is a summary of the key surcharges, as outlined in the Supply Chain Dive report:

• Imports from Europe (including Austria, Belgium, Switzerland, and others):

  • Services: Worldwide Express, Express Saver, Express Plus, Expedited, Saver Pallet, Express Freight Time of Day

  • Fee: $0.23 per pound

  • Effective: September 28, 2025 – January 17, 2026

• Imports from India:

  • Services: Same as above

  • Fee: $0.47 per pound

  • Effective: September 28, 2025 – January 17, 2026

• Imports from Canada:

  • Service: Standard – Residential Surcharge

  • Fee: $0.52 per package

  • Effective: October 26, 2025 – January 17, 2026

• Exports from the U.S. to All Destinations (excluding Israel):

  • Services: Worldwide Express, Express Saver, Express Plus, Expedited, Express Freight

  • Fee: $0.20 per pound

  • Effective: October 26, 2025 – January 17, 2026

• Exports from the U.S. to All Destinations (Economy Services):

  • Services: Worldwide Economy DDU and DDP

  • Fee: $0.20 to $0.50 per pound

  • Effective: October 26, 2025 – January 17, 2026

• Exports from the U.S. to Canada and Mexico:

  • Service: Standard

  • Fee: $0.20 per package

  • Effective: October 26, 2025 – January 17, 2026

Additionally, UPS will apply peak season surcharges starting September 28, 2025, on a range of U.S. package services, further increasing costs during the holiday rush. Notably, these surcharges exclude shipments to or from China, reflecting a 35% drop in UPS’s China-to-U.S. trade lane volume in May and June 2025, as noted by CEO Carol Tomé.

Implications for Shippers

The new surcharges come at a critical time, as the Q4 holiday season is a make-or-break period for many businesses. Key impacts include:

• Increased Shipping Costs: The per-pound and per-package fees, combined with fuel surcharges, will raise the cost of international and domestic shipments, squeezing margins for e-commerce merchants and manufacturers.

• Budget Planning Challenges: With surcharges in effect from September 28 to January 17, 2026, businesses must adjust budgets to account for these additional expenses, especially for high-volume shippers.

• Global Trade Shifts: The exclusion of China from these surcharges, coupled with volume declines in the China-to-U.S. trade lane, highlights shifting trade patterns. As Tomé noted, “trade doesn’t stop, it moves,” urging businesses to adapt to new market dynamics.

• Competitive Pressure: With rival FedEx also implementing demand surcharges ($0.10–$0.50 per pound from September 22 to October 19), shippers face industry-wide cost increases, making carrier diversification and cost optimization critical.

How Gain Consulting Can Help

Gain Consulting specializes in helping businesses navigate rising logistics costs and complex market conditions. Here’s how we can support you during the 2025 holiday season and beyond:

• Carrier Diversification and Rate Negotiation: We help you explore alternatives like OnTrac or regional carriers to offset UPS and FedEx surcharges, securing competitive rates tailored to your shipping needs.

• Cost Optimization Strategies: Our team leverages advanced analytics to analyze your shipping patterns and identify opportunities to reduce costs, such as consolidating shipments or optimizing package sizes to minimize per-pound fees.

• Proactive Planning for Peak Season: We assist in forecasting holiday demand and aligning your logistics strategy to avoid costly last-minute shipments, ensuring timely deliveries without breaking the bank.

• Streamlined Operations: From invoice accuracy to dispute resolution, we ensure your shipping processes are efficient, helping you avoid overcharges and manage surcharges effectively.

Preparing for a Costly Q4

The UPS surcharges, combined with broader industry trends like declining shipment volumes (per the August 2025 Cass Freight Index) and rising carrier rates (e.g., FedEx’s 2026 hikes), underscore the need for strategic logistics planning. At Gain Consulting, we’re here to help you turn these challenges into opportunities by optimizing your supply chain for cost and efficiency.

As the holiday season approaches, proactive measures like diversifying carriers, leveraging data analytics, and streamlining operations can make all the difference. Let Gain Consulting guide you through the Q4 stretch with solutions that keep your business competitive.

Contact us today to learn how we can help you manage UPS surcharges and optimize your logistics strategy. Visit our website or reach out to our sales team for tailored solutions that drive results.

Source: Supply Chain Dive, “UPS adds surcharges to various US import, export services,” Max Garland, September 19, 2025.Link: UPS rate changes