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UPS holiday demand surcharge starts October 25, 2026: what it adds per package

From October 25, 2026, UPS adds a demand surcharge of $0.50 to $2.50 per package on Ground Residential, Ground Saver and Air. What it adds to a small seller's season.

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A brown UPS package car, a boxy delivery van, parked on a city street in Montreal
A propane-powered UPS package car on a street in Montreal, Quebec. Photo: JasonVogel (CC BY-SA 4.0, cropped), via Wikimedia Commons

From October 25, 2026 to January 16, 2027, UPS adds a demand surcharge to every UPS Ground Residential, UPS Ground Saver and UPS Air package: $0.50 a box on the ground services and $1.35 on Air, rising to $0.75 and $2.50 from November 22 to December 26. The surcharges come on top of all other charges, according to UPS's demand surcharge schedule (August 26, 2026 update). Our worked example: 50 Ground Residential boxes a week adds $362.50 over the 12-week season.

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The short version

  • From October 25, 2026, UPS charges a demand surcharge of $0.50 per package on UPS Ground Residential and UPS Ground Saver, and $1.35 on UPS Next Day Air and other UPS Air services (UPS schedule, August 26, 2026 update).
  • From November 22 to December 26 the amounts rise to $0.75 (ground) and $2.50 (Air), then drop back to $0.50 and $1.35 until January 16, 2027.
  • Separate demand surcharges on Additional Handling ($8.75, $11.90 at peak) and Large Package ($96.25, $117.50 at peak) boxes have applied since September 27.
  • Our worked example: 50 Ground Residential boxes a week pay $362.50 in demand surcharges over the season; the same volume by Next Day Air pays $1,097.50.

By the numbers

$0.50UPS demand surcharge per Ground Residential or Ground Saver box from Oct 25
$2.50Per UPS Air box from Nov 22 to Dec 26
$362.50Season total at 50 Ground Residential boxes a week (illustrative)

Key dates

  1. 25Oct UPS demand surcharge starts on Ground and Air boxes
  2. 22Nov UPS peak surcharge rises to $0.75 ground, $2.50 Air
  3. 16Jan UPS holiday demand surcharges end

What changed

UPS's demand surcharge schedule (August 26, 2026 update) sets three demand periods for UPS Air, UPS Ground Residential and UPS Ground Saver (formerly SurePost) packages. UPS says the surcharges "apply in addition to all other applicable Charges" and that amounts and periods may change, so it tells shippers to check ups.com/peaksurcharge before shipping.

ServiceOct 25 to Nov 21Nov 22 to Dec 26Dec 27 to Jan 16
UPS Ground Saver$0.50$0.75$0.50
UPS Ground Residential$0.50$0.75$0.50
UPS Next Day Air$1.35$2.50$1.35
All other UPS Air (2nd Day Air A.M., 2nd Day Air, 3 Day Select)$1.35$2.50$1.35

Per package. Source: UPS demand surcharges, August 26, 2026 update.

Shippers billed for more than 20,000 Ground Residential, Ground Saver and Air Residential packages in any week after October 2025 pay a different, volume-based schedule of up to $8.00 (ground) and $9.35 (Air Residential) per package. That does not apply to typical small sellers.

The demand surcharges on Additional Handling ($8.75 per package), Large Package ($96.25) and Over Maximum Limits ($530) boxes already started on September 27 and rise to $11.90, $117.50 and $590 from November 22 to December 26.

What it means for your business

For a small seller the per-box amounts look small, but they add up across the season, and they do not show on a rate you quoted buyers months ago. Here is what the surcharge adds at a steady volume, using UPS's amounts and the length of each period (4, 5 and 3 weeks):

Boxes per week, one serviceOct 25 to Nov 21 (4 wks)Nov 22 to Dec 26 (5 wks)Dec 27 to Jan 16 (3 wks)Season total
20 Ground Residential$40.00$75.00$30.00$145.00
50 Ground Residential$100.00$187.50$75.00$362.50
50 Next Day Air$270.00$625.00$202.50$1,097.50

Illustrative: a steady weekly volume is a simplification, and most sellers ship more in December, when the surcharge is highest. If you offer free shipping, the surcharge comes straight out of your margin; on a $25 item, a $0.75 peak surcharge is 3% of the sale. If you buy UPS labels through a marketplace or a shipping app at a discount, check the label price after October 25: the surcharge is a UPS charge, and how each tool shows it can differ.

USPS runs its own holiday price increase to January 17, 2027 (see our USPS holiday price brief), so switching carriers does not avoid a peak charge, but the amounts differ by service and weight.

Who is affected

  • Sellers who ship to homes with UPS Ground Residential or UPS Ground Saver, and anyone using UPS Air services, from October 25, 2026 to January 16, 2027.
  • Sellers of bulky items that trigger Additional Handling or Large Package charges (surcharges already in force since September 27).
  • Not covered by this schedule: UPS Ground to business (commercial) addresses, which is not in the list of services.

What to do now

  1. Before October 25, add $0.50 (and $0.75 from November 22) per ground box to your shipping cost on free-shipping listings, or raise your flat shipping rate by that much.
  2. Push buyers who want speed toward ordering earlier: Air packages pay $2.50 extra from November 22 to December 26.
  3. Check box sizes on bulky items: an Additional Handling box pays $11.90 extra at peak, and a Large Package $117.50.
  4. Compare a few parcels with our shipping cost calculator, and recheck margins with the profit margin calculator.

Keep shipping costs visible

Our Reseller Profit Tracker logs every sale with its fees and the label you paid, so a holiday surcharge shows up in your profit right away. No subscription, no account, your data stays on your device.

Tools we recommend

Easyship →Compare courier rates and print labels for international shipments.

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