UPS Mail Innovations will levy peak season shipping fees from Oct. 5 until Jan. 18, 2026, according to a customer communication from the delivery provider viewed by Supply Chain Dive.
The temporary fees include a $2 surcharge for all outbound packages that meet one of the following criteria, per the Sept. 5 communication:
- A weight of more than 10 pounds
- Destined for a Zone 9 location
- Exceed 22 inches in length and/or exceed two cubic feet
UPS Mail Innovations will also place a $0.30 per-piece surcharge on all domestic parcels that qualify for the "Parcel Select" mail class. The fee will be included in customers' base rates, according to the communication.
The delivery provider levied similar holiday fees in 2024, according to EasyPost. However, the surcharges applied for a shorter period of time, from Nov. 3 to Dec. 28. Additionally, the per-piece surcharge was $0.20 instead of $0.30 and applied to all mail classes.
UPS Mail Innovations provides processing and transportation for parcels and mail, and historically it has handed off volume to the U.S. Postal Service for last-mile delivery. However, the UPS arm's contract with the agency expired at the end of 2024, resulting in new rates for the business that introduced cost pressures, UPS EVP and CFO Brian Dykes said on an April earnings call.
To mitigate the price increases it was weathering, UPS Mail Innovations started using alternative transportation vendors in Q2, per a UPS financial report. Amid the adjustments, its quarterly revenue fell $109 million year over year, a drop "driven by volume declines resulting from initiatives to improve revenue quality."
The upcoming peak season surcharges will follow price increases UPS Mail Innovations installed in May following the expiration of its Postal Service contract. The pricing adjustments included 40% rate hikes for some businesses and added fees.
"UPS Mail Innovations continually evaluates ways to minimize the impact of cost increases on our customers through network enhancements and automation," the peak season surcharge communication said.
