UPS is introducing a series of new fees and fee updates in 2025 that will impact shippers. These changes affect fuel surcharges, invoicing, and payment processes. Below is a clear, detailed rundown of what’s coming, when it starts, and practical advice to help you adapt and save where possible.
What’s Changing and When
1. Fuel Surcharge Adjustments
Effective Date: March 10, 2025Details: UPS will adjust fuel surcharges for U.S. Ground Domestic, UPS SurePost, and U.S. Domestic Air services. For Domestic Ground, SurePost and Domestic Air the increase is .50%. More details can be found here. Keep in mind, these surcharges are tied to fluctuating fuel prices and can significantly bump up your shipping costs.
Why It Matters: Fuel surcharges are applied to every package shipped.
Advice: Start tracking fuel surcharge trends now (check UPS.com for updates). Build some flexibility into your shipping budget to handle the increase and consider consolidating shipments to reduce frequency.
2. Print Invoice Fee
Details: A new $5.00 fee will apply to every printed invoice copy sent to shippers or payors.
Why It Matters: Paper invoices could quietly inflate costs, especially for businesses with frequent shipments.
Advice: Switch to electronic invoicing – it’s free, faster, and cuts out the $5 hit per invoice. Set up e-invoicing through your UPS account to streamline your records and avoid this entirely.
3. Payment Fee Updates
Effective Date: March 31, 2025
Details:
- Payments by check or wire transfer will incur a $25.00 fee per transaction (ACH payments are exempt.)
- Late payment fees will increase from 8% to 9.9% of the past-due balance, including prior late fees.
Why It Matters: These fees penalize traditional payment methods and late payers, disrupting cash flow if not addressed.
Advice: Move to ACH payments to skip the $25 fee – it’s efficient and cost-free. Set reminders or automate payments to avoid the steep 9.9% penalty, which can snowball on overdue balances.
4. Payment Processing Fee
Effective Date: May 18, 2025
Details:
- A new 2% fee will apply to most invoice charges (not just shipping costs) on each invoice.
- The credit card surcharge will no longer apply.
Why It Matters: The 2% fee adds a layer of cost across your bill.
Advice: Run the numbers – compare the 2% fee against your credit card’s rewards or costs. For most, ACH will still be the cheapest option, but credit cards could make sense if you earn cash back or points.
Practical Tips for Shippers
Embrace Digital Solutions: Go paperless with e-invoices and pay via ACH. It’s the simplest way to dodge the $5 invoice fee and $25 payment fee. Setting this up now saves headaches later.
Pay On Time: The jump to a 9.9% late fee is steep. Use calendar alerts, auto-payments, or a dedicated billing process to ensure you’re never late.
Optimize Payments: Test your options and remember ACH is fee-free.
Plan Ahead: For businesses, these fees could erode margins. Look at your shipping volume and payment habits now and tweak your strategy before it’s too late.
UPS’s 2025 fee changes aren’t just minor tweaks — they could meaningfully raise your shipping and logistics costs if you don’t adjust. The good news? You’ve got (some) time to prepare. By going digital, paying smart, and staying informed, you can soften the blow and keep your operations running smoothly. Check UPS.com for the latest updates, and stay ahead of rising shipping costs.
Thomas Andersen is LJM Partner & EVP Supply Chain Services.
