As shipping volume spikes during the holidays, or anytime capacity is strained, carriers like FedEx and UPS apply Demand or Peak Surcharges to help offset their increased operational costs.
These additional fees can significantly inflate your parcel spend if you’re not tracking them, and in today’s logistics environment, they’re no longer just a seasonal concern.
From “Peak” to “Demand”: A Shift in Naming, Not Impact
Originally, these surcharges were introduced to cover higher delivery costs during the holiday rush. For example:
- FedEx (2018): Nov. 19 – Dec. 24
- UPS (2018): Nov. 18 – Dec. 22
However, during the pandemic, demand remained high year-round. In response, carriers expanded the scope and duration of the charges, renaming them “Demand Surcharges” to reflect their broader, more consistent application.
Today, the terms Peak Surcharge and Demand Surcharge are often used interchangeably
Who’s Affected?
Both FedEx and UPS now apply these secondary surcharges to a wide range of shipments, including:
- Additional Handling Packages
- Oversized/Large Packages
- Unauthorized Packages
- Residential Deliveries
- Express Services (Overnight, 2-Day, Express Saver)
- Ground Economy/Final Mile Shipments
Even high-volume shippers face additional residential surcharges if weekly volumes exceed 20,000 packages during peak periods.
Sample Surcharge Amounts (FedEx 2024–2025)
| Surcharge Type | Time Period | Amount |
|---|---|---|
| Additional Handling | Feb–Sept | $3.45/pkg |
| Additional Handling | Nov–Dec Holiday | $10/pkg |
| Oversize Package | Nov–Dec Holiday | $100/pkg |
| Unauthorized Ground | Nov–Dec Holiday | $500/pkg |
| Express Service Surcharge | Nov–Dec Holiday | $2/pkg |
| Ground/Home Delivery | Nov–Dec Holiday | $0.55/pkg |
For residential delivery surcharges, FedEx also uses a “Peaking Factor” tied to your shipping volume increase, which can result in extra charges of up to $8.25 per package.
The Bottom Line: Plan for These Charges Year-Round
Demand surcharges are no longer a holiday-only cost. If you’re not accounting for them in your:
- Forecasts
- Rate negotiations
- Carrier strategy
…you’re likely underestimating your true cost per shipment.
How nVision Global Can Help?
We help you:
- Track and forecast surcharge exposure.
- Model seasonal cost impacts.
- Identify alternatives and savings.
- Negotiate smarter contracts with carriers.
Examples of secondary UPS surcharges applied during peak on top of the primary surcharge.
These charges aren’t going away, so let’s make sure they’re not going unnoticed. Let’s get your parcel strategy dialed in before the next peak hits.
Speak with a Parcel Optimization Specialist.