Carrier peak surcharges began September 28: free-shipping sellers eat the difference

FedEx and UPS peak surcharges run Sept 28–Jan 17. Additional handling hit $8.80–$11.85 and the residential demand surcharge rose to $0.80 per package.
In the US, FedEx and UPS peak surcharges took effect on September 28 and run through January 17. The figures top last year's: additional handling now sits at $8.80–$11.85 per package, and the residential demand surcharge rose to $0.80 (from $0.65). These stack on the roughly 5.9% average general rate increase (GRI) both carriers announced for 2026 — with surcharges, the effective increase can reach 8–12% on many shipments.
The impact on sellers is direct: anyone offering 'free shipping' covers this difference out of pocket. As volume climbs in peak season, the shipping line grows disproportionately; on thin-margin items a single surcharge can erase the profit. What to do: update your free-shipping threshold for the surcharges, shrink package size (dimensional weight), and price remote-zone deliveries separately. Treating shipping as a fixed cost and keeping the old threshold is the fastest way to lose the most during the weeks you sell the most.