UPS published its 2026 U.S. domestic Demand Surcharges on August 26, 2026, with two separate start dates. Demand surcharges for qualifying Additional Handling, Large Package and Over Maximum packages begin September 27. Rates are $8.75, $96.25 and $530 during the shoulder periods, increasing to $11.90, $117.50 and $590 from November 22 through December 26. These charges apply to qualifying commercial and residential domestic packages.
Service-level charges begin October 25. UPS Ground Residential and Ground Saver are $0.50 per package during the shoulder periods and $0.75 during the holiday peak; UPS Air is $1.35 and $2.50. Compared with 2025, the handling and size demand charges increased approximately 6% to 10%, while the flat service-level charges increased approximately 22% to 25%.
Customers whose combined Ground Residential, Ground Saver, Next Day Air Residential and Other Air Residential volume exceeded 20,000 packages in any week after October 2025 are placed in the Higher Volume Shipper schedule. UPS may aggregate affiliated accounts, and once the threshold is met, the schedule applies until further notice. The Higher Volume grid replaces only the flat service-level schedule in Section B; the separate Additional Handling, Large Package and Over Maximum demand charges still apply.
The most immediate exposure is the handling and size schedule. It starts four weeks before the service-level charges and can affect B2B shippers with little or no residential volume. These demand charges are added to the underlying year-round charges, and UPS’s published fuel list confirms that Demand Surcharges for Commercial, Residential, Additional Handling, Large Package and Over Maximum packages are subject to the applicable fuel surcharge.
Multiple charges on the same package are not automatically billing errors. UPS’s Tariff states that Demand Surcharges apply cumulatively when a package meets more than one criterion, and Over Maximum charges may be assessed in addition to a Large Package Surcharge. Invoice audits should therefore validate the applicable criteria rather than assume that two demand charges on one tracking number are recoverable.
For Higher Volume Shippers, the largest risk is the weekly tier structure. The highest applicable rate is assessed on every package within that service level for the week—not only the packages above the tier boundary. For example, moving from exactly 150% of baseline to just above 150% can increase the charge on approximately 30,000 Ground Residential packages by roughly $9,000 for the week.
UPS normally uses average weekly volume from May 31 through June 27 as the baseline. If average volume from August 30 through September 26 falls below 80% of the June average, UPS substitutes the lower figure, increasing the shipper’s peaking factor. In the prior example, a decline from exactly 80% to 79% could increase the surcharge on a 40,000-package week by approximately $28,000.
UPS’s wording for shortened Thanksgiving and Christmas operating weeks remains unclear and does not plainly explain how volume or charges will be normalized. Higher Volume Shippers should obtain written clarification before finalizing peak forecasts.
For customers below the Higher Volume threshold, the service-level fees remain relatively modest, although the 22% to 25% year-over-year increases will add up at scale. The larger exposure is likely to come from Additional Handling, Large Package and Over Maximum packages because those charges are substantially higher, begin earlier and apply to commercial shipments as well as residential shipments.
For customers at or above the threshold, the critical questions are whether a week during the 2025 peak already triggered the 20,000-package rule, whether affiliated accounts are being aggregated, where the September baseline will land and how close projected weekly volume is to each tier boundary. Commercial Air volume does not count toward the original threshold, but Commercial Air charges are included in the Higher Volume tables once the customer qualifies.
The most notable carrier comparison remains economy ground. Below the UPS threshold, Ground Saver’s $0.50 to $0.75 charge is substantially lower than FedEx Ground Economy’s $2.55 to $4.05 charge. At higher UPS peaking factors, however, Ground Saver can rise as high as $8.00 and become more expensive than FedEx Ground Economy’s flat fee. FedEx also uses a weekly qualification process and a two-week calculation lag, while UPS uses a historical trigger and can reset its baseline based on September volume, so the two structures should not be compared solely on headline rates.
💡 There are two start dates. Handling and size demand charges begin September 27; Air, Ground Residential and Ground Saver charges begin October 25.
💡 Check last year’s peak volume. One week above 20,000 qualifying packages after October 2025 can place a customer in the Higher Volume schedule until further notice.
💡 The Higher Volume grid replaces Section B only. Additional Handling, Large Package and Over Maximum demand charges remain separately applicable.
💡 Tier boundaries reprice the entire week. A small increase in volume can move every package in a service level to a higher rate.
💡 Watch the September baseline reset. Falling below 80% of June volume can lower the baseline and materially increase peak surcharges.
💡 Fuel and multiple demand charges can apply. Do not budget only the published demand rates or assume that multiple charges on one package are automatically invalid.
💡 Ground Saver has a major advantage below the threshold, but not necessarily above it. At high peaking factors, its UPS surcharge can exceed FedEx Ground Economy’s flat demand fee.
💡 Clarify the holiday-week calculation. UPS’s published language for shortened operating weeks is not sufficiently clear for precise forecasting.
