UPS Matches FedEx with 5.9% General Rate Increase, but Key Differences Emerge

More than a month after FedEx announced a 5.9% General Rate Increase (GRI) effective January 5, 2026, UPS has followed suit with an equivalent headline increase. However, UPS’s adjustment will take effect two weeks earlier — on December 22, 2025 — and a closer look at the details shows that the two carriers’ pricing structures diverge in important ways across services, weights, and zones.

Domestic Ground: Heavier Impact on Lightweight and Short-Zone Shipments

UPS’s domestic ground rates will rise an average of 5.56%, though the impact varies by zone and weight.

• By Zone: Zones 45–46 experience the highest increase at 5.9%, followed by Zone 3 at 5.65%.
• By Weight: The steepest hikes are for shipments weighing 0–5 lbs. (5.95%) and 11–70 lbs. (5.95%).
  Notably, higher rates in Zone 2 for 1-lb packages will significantly affect minimum package charges, a factor shippers should model closely.

Domestic Express: Broad Increases Across Air Services

UPS air services will see rate changes that vary by both weight and zone.

• 3 Day Select: Increases 5.9% for shipments of 11–70 lbs., with a 5.05% overall average.
• 2 Day Air: Sees the largest zone-based increases in Zones 224–226 (5.9%) and a 6.46% hike in the 0–5 lb. weight range, averaging 5.45% overall.
• 2 Day A.M.: Increases 6.01% for 0–5 lbs. and 6% for 11–70 lbs.
• Next Day Air Saver: Gains 5.56% in Zone 138 and 5.45% in Zone 136, with 0–5 lb packages up 6.51% and an overall increase of 5.4%.
• Next Day Air: Zones 124–126 rise 5.9%, and 0–5 lb. packages are up 6.12%, averaging 5.56% across the service.
• Next Day Air Early: Peaks at Zone 124 (5.63%), with 11–60 lb. shipments up 5.16%, and an overall increase of 5.06%.

Surcharges and Fees: 6–9% Increases, with LPS Leading the Way

Most surcharges are climbing 6–7% year over year, though some exceed that range:

• Large Package Surcharge (LPS) – Commercial Zones 5–6: Up 9.2%, from $250 to $273.
• LPS – Commercial Zone 7+ and Residential Zones 3–4: Up 10%, from $260 to $286.

In addition, UPS has updated its U.S. Domestic Large Package Surcharge (LPS) and Additional Handling Charge (AHC) policies, which were originally scheduled for August 17, 2025, but postponed to January 26, 2026.

• AHC now applies to packages meeting a length + girth threshold, with the cubic threshold increasing from 8,640 to 10,368 cubic inches, aligning with FedEx’s upcoming change effective January 12, 2026.
• Notably, UPS remains roughly 13–14% cheaper than FedEx on LPS Commercial shipments, marking a rare area of divergence between the two carriers’ domestic pricing.

Other Notable Updates

• Area Surcharges: The list of ZIP codes subject to area surcharges will be updated on December 22, 2025, though details have not yet been released.
• Printer Rental Fee: Increasing from $3 to $9.99 as of December 22, 2025.

Key Takeaway for Shippers

While UPS’s GRI mirrors FedEx’s headline rate, the underlying structure tells a different story. The timing of the increase, zone-weight differentials, and surcharge adjustments mean the real-world impact will vary significantly depending on a shipper’s profile. Detailed modeling and side-by-side carrier comparisons will be essential to understanding and mitigating cost changes in 2026.

Cory Davis is Senior Transportation Analyst, Intelligent Audit.