More than a month after FedEx revealed its 5.9% General Rate Increase (GRI) effective January 5, 2026, UPS has followed suit with a matching headline increase. However, UPS will implement its new rates two weeks earlier—on December 22, 2025.

While the headline number may appear identical, the details tell a different story. UPS’s adjustments vary significantly across services, weights, and zones, meaning the real-world impact will differ for every shipper. Understanding these nuances will be crucial to controlling costs in 2026.

Domestic Ground: Biggest Impact on Lightweight and Short-Zone Shipments

UPS’s domestic ground rates will increase by an average of 5.26%, but the actual changes depend heavily on zone and shipment weight.

• By Zone: Zones 45–46 will see the steepest climb at 5.57%, followed by Zone 3 at 5.34%.
• By Weight: The most notable hikes affect shipments weighing 0–5 lbs. (5.63%) and 11–80 lbs. (5.62%).

The increase for Zone 2, 1-lb. packages will have a particularly large impact on minimum package charges, a critical cost component that shippers should analyze closely.

Domestic Express: Broad Increases Across Air Services

Rate increases are also spread across all domestic air services, varying by both zone and weight:

• 3 Day Select: Up 5.57% for 11–70 lb. shipments (4.8% overall).
• 2 Day Air: Zones 224–226 increase 5.57%, with 0–5 lb. packages up 6.07% (5.17% overall).
• 2 Day A.M.: Up 5.67% for 0–5 lbs. and 5.66% for 11–70 lbs.
• Next Day Air Saver: Zone 138 up 5.27%, Zone 136 up 5.17%, and 0–5 lb. shipments up 6.11% (5.12% overall).
• Next Day Air: Zones 124–126 rise 5.57%, with 0–5 lb. packages up 5.76% (5.26% average).
• Next Day Air Early: Peaks at Zone 124 (5.33%), with 11–60 lb. shipments up 4.9% (4.81% overall).

UPS’s air rate structure mirrors FedEx’s on paper, but when you factor in zone differentials and service types, the outcome can vary dramatically depending on your shipping profile.

Surcharges and Fees: 6–9% Increases—Large Package Surcharges Lead the Way

UPS’s accessorial surcharges and fees will see increases averaging 6–7%, with some exceeding that range:

• Large Package Surcharge (LPS) – Commercial Zones 5–6: +8.42%, from $250 → $273
• LPS – Commercial Zone 7+ and Residential Zones 3–4: +9.09%, from $260 → $286

UPS has also revised its LPS and Additional Handling Charge (AHC) policies. Originally slated for August 17, 2025, they’re now postponed to January 26, 2026.

• AHC will apply to packages meeting a revised length + girth threshold, with the cubic limit rising from 8,640 to 10,368 cubic inches, matching FedEx’s change effective January 12, 2026.
• Despite these changes, UPS remains roughly 13–14% cheaper than FedEx for LPS Commercial shipments—a rare area where UPS holds a pricing advantage.

Other Notable Updates

• Area Surcharges: UPS will update ZIP codes subject to area surcharges on December 22, 2025, with details to follow.
• Printer Rental Fee: Increasing from $3 to $9.99 effective December 22, 2025.

Key Takeaway for Shippers

While UPS’s 5.9% GRI aligns with FedEx’s headline rate, the timing, structure, and surcharges make its impact unique. The real cost to your business will depend on what you ship, where it ships, and how your carrier contracts are structured.

To minimize the effect of these changes, now is the time to evaluate your shipping strategy—before the new rates take effect.

How Business Solutions Group Can Help

At Business Solutions Group, we specialize in helping companies like yours offset carrier rate increases through strategic benchmarking, contract optimization, and cost reduction programs.

Our no-cost shipping analysis identifies where you can save 10–30% on UPS, FedEx, or freight shipping—without changing your daily operations or carrier relationships.

Let us show you how much you could save before the 2026 rate changes take effect.

👉 Schedule Your Free Benchmark Analysis: https://businesssolutionsus.com/supply-chain-and-shipping-contact