UPS Announces 5.9% Rate Increase and Higher Surcharges Starting December 22

UPS will raise its shipping rates by an average of 5.9% across ground, air, and international services beginning December 22, 2025. Alongside the general rate hike, the carrier is also increasing key surcharges, including additional handling and residential delivery fees, and updating delivery-area ZIP codes subject to extra charges.

The company says these adjustments aim to support its ongoing network expansion and service improvements. However, shippers are bracing for higher costs, particularly for residential and remote deliveries, as the changes take effect right after the busy holiday season.

Many logistics experts view the move as another sign of tightening cost pressures in parcel delivery, urging businesses to revisit their pricing and contract strategies before year-end.