Parcel surcharges are hitting shippers harder than ever, and 2025 is bringing even more aggressive cost increases — especially for oversized packages. In a recent video, Jack McCrum from Reveel breaks down a critical UPS policy update: a minimum billable weight of 40 pounds for packages incurring dimensional charges. This means that even if a package weighs significantly less, shippers will still be charged as if it weighs 40 pounds — leading to steep, hidden cost increases.

To help businesses navigate this change, Jack shares three key strategies for mitigating surcharges and reducing parcel spend:

1. Negotiate with Your Carrier

Carrier contracts aren’t set in stone — they’re negotiable. Many businesses accept surcharges at face value, but with the right data and leverage, it’s possible to push back on excessive fees. UPS and FedEx are implementing these surcharges to protect their margins, but savvy shippers can use their volume, shipping mix, and competitive carrier alternatives as leverage in negotiations. If you haven’t reviewed your contract recently, now is the time to revisit it with data-backed insights to negotiate better terms.

2. Reassess Package Dimensions

One of the most overlooked ways to cut shipping costs is optimizing package sizes. Carriers impose dimensional weight (DIM) charges, which means larger boxes — even if they’re light — are billed at inflated weights. To avoid unnecessary additional handling charges, consider:

• Reducing box size where possible to lower DIM weight charges.
• Exploring new packaging materials that provide protection without excess bulk.
• Working with suppliers to minimize unnecessary packaging in inbound shipments.
• Small tweaks to package dimensions can lead to significant savings over time, especially for high-volume shippers.

3. Explore Alternative Carriers

FedEx and UPS dominate the parcel market, but they aren’t your only options. Regional carriers, USPS, and third-party logistics providers (3PLs) often offer more competitive rates — especially for bulky shipments. Many shippers assume switching carriers is too disruptive, but diversifying your carrier mix can introduce flexibility and cost savings without fully abandoning your primary provider. A multi-carrier strategy ensures you’re not held hostage by annual rate hikes and policy changes like this new UPS surcharge.

Final Thoughts

Surcharges aren’t going away — but how you manage them makes all the difference. By proactively negotiating, optimizing packaging, and evaluating alternative shipping strategies, businesses can stay ahead of carrier cost increases and protect their margins.

Watch the full video with Jack McCrum to learn more.