UPS took its time revealing its peak season surcharges this year — the carrier announced last year's holiday levies in July 2024. The shortened window between the fee announcement and when they begin applying resulted in some UPS shippers “scrambling to negotiate peak surcharges,” experts said.

“UPS is trying to find ways to increase revenue per piece,” experts said. “So, part of the delay was likely determining the right peak surcharge adjustments. The condensed customer response time was just a nice benefit.”

While UPS’ announcement didn’t elaborate on the timing shift, CEO Carol Tomé said on the company’s July 29th earnings call that major shippers are struggling to forecast holiday demand amid an uncertain trade environment.

“So we have about 100 customers that drive 80% of the surge during peak,” Tomé said. “Ordinarily, we don’t get peak plans until the end of August, and then, final plans at the end of September. I think they’re going to be pushing them more into September, as they’re working through their plans.”

UPS typically institutes a holiday surcharge for large customers that increases in cost as volume climbs, and 2025 is no different. This year’s demand surcharge for higher-volume shippers can range from $0.40 to $8.75 per package.

The demand surcharge’s exact amount depends on the service used and to what extent the customer’s weekly shipping activity deviates from their “baseline” volume in June. However, UPS may use Aug. 31 to Sept. 27 as the baseline if the shipper’s average weekly volume during that period is less than 80% of what they shipped in June.

Shippers have several ways to limit the impact of holiday surcharges on their bottom lines, according to parcel pricing experts. Tactics include negotiating holiday discounts with the carrier, tapping alternative delivery providers and incentivizing customers to order during periods of lower fees.