UPDATES & INSIGHT
FedEx 2025 Rate Increases
& Surcharge Changes:
What Shippers Should Know
Last updated: Jul 22 2025 | 7:27 PM
Written by Jacob Wong

Expecting advertisements?
We don’t believe in them. Enjoy advertisement-free content!
Since the start of this year, FedEx and UPS have quietly implemented a series of rate and surcharge changes that are affecting shippers across the board. Most businesses are familiar with the headline 5.9% General Rate Increase, but that’s just the tip of the iceberg. What often flies under the radar are the small fees—the DAS updates, pickup charges, ZIP code reclassifications. They creep in slowly, and most companies simply absorb the cost because they assume there’s no alternative. For now, I’ll zero in on the latest FedEx updates.
Recent changes as of July 14, 2025:
FedEx has extended Unauthorized Package and Freight Charges to international shipments exceeding size/weight limits. Additional Handling threshold for international packages is also dropping from 70 lbs. to 55 lbs.
Heavily affects: Exporters of heavy equipment or parts, e-commerce brands shipping large consumer goods internationally, and 3PL/warehouses that do not measure and flag oversized packages before they leave the facility.
—
Even a few international boxes exceeding 55 lbs. can trigger recurring fees of $30–$70 per shipment, depending on the type of violation.
Unusually shaped, oversized packages (pause) may now face higher fees.
Heavily affects: E-commerce brands shipping awkwardly sized boxes, such as those for fishing rods, rugs, guitar cases, auto parts, batteries, metal hardware, or liquids.
—
Surcharges for oversized or unauthorized ground packages can exceed $110 per shipment if dimensions cross certain thresholds.
Effective August 18, 2025:
New pricing model for the US & Canada for parcel pick-ups.
Heavily affects: Companies that rely on daily pickups or use a mix of carriers may lose access to bundled pricing that previously helped reduce fees. Businesses with unpredictable parcel volumes or agreements that included free pickups may now see those charges listed as separate line items on their invoice.
—
Pickup fees could now range from $7.50 to $35.50 per week—or $9 to $22.75 per on-demand stop—depending on service level and schedule.
Dimensions will be rounded up to the next whole inch or centimeter for billing purposes.
Heavily affects: Fulfillments that aren’t measured precisely for cost efficiency, companies that rely on custom or non-standard boxes.
—
For high-volume shippers, even a 1″ increase in dimensional billing can raise per-package costs by $0.20 to $1.50, depending on zone and service level.
Here’s the good news: once you know what to look for, these issues are manageable and often fixable. We’ve helped companies catch recurring charges they didn’t even know they were paying and reroute shipments to avoid unnecessary fees.
We also support contract reviews and negotiations when it makes sense. In many cases, we can offer alternative rates through our network, often at a better rate than what shippers pay through brokers or platforms that add markup without providing proper carrier support. Most shippers assume they’re stuck with the rates they have or that high shipping costs are just part of doing business. They’re not.
The Part they don’t tell you
I set out to focus on recent rate and surcharge changes, but the truth is, it’s about understanding what’s possible when you can see the whole picture.
We’ve had clients who didn’t realize they qualified for alternative programs or were stuck paying penalties simply for not meeting certain minimums, even though better options were available but never presented to them. In some cases, switching to a different carrier made sense, and once we negotiated on their behalf, the savings were clear. In others, we took a close look at their packaging and found small adjustments that made the difference between standard pricing and unnecessary fees. Once those changes were made, the impact was immediate.
This isn’t a one-size-fits-all process. We’ve spent years learning what the carriers don’t expect you to know. The hidden structures are more than just their monthly updates; they encompass the blind spots and overlooked paths that benefit the shipper. That’s where the real value is—and once you know it’s there, you won’t go back to flying blind.
UPDATES & INSIGHT
FedEx 2025 Rate
& Surcharge Changes:
What Shippers Should Know
Last updated: Jul 22 2025 | 7:27 PM
Written by Jacob Wong

Expecting advertisements?
We don’t believe in them.
Enjoy advertisement-free content!
Since the start of this year, FedEx and UPS have quietly implemented a series of rate and surcharge changes that are affecting shippers across the board. Most businesses are familiar with the headline 5.9% General Rate Increase, but that’s just the tip of the iceberg. What often flies under the radar are the small fees—the DAS updates, pickup charges, ZIP code reclassifications. They creep in slowly, and most companies simply absorb the cost because they assume there’s no alternative. For now, I’ll zero in on the latest FedEx updates.
Recent changes as of July 14, 2025:
FedEx has extended Unauthorized Package and Freight Charges to international shipments exceeding size/weight limits. Additional Handling threshold for international packages is also dropping from 70 lbs. to 55 lbs.
Heavily affects: Exporters of heavy equipment or parts, e-commerce brands shipping large consumer goods internationally, and 3PL/warehouses that do not measure and flag oversized packages before they leave the facility.
—
Even a few international boxes exceeding 55 lbs. can trigger recurring fees of $30–$70 per shipment, depending on the type of violation.
Unusually shaped, oversized packages (pause) may now face higher fees.
Heavily affects: E-commerce brands shipping awkwardly sized boxes, such as those for fishing rods, rugs, guitar cases, auto parts, batteries, metal hardware, or liquids.
—
Surcharges for oversized or unauthorized ground packages can exceed $110 per shipment if dimensions cross certain thresholds.
Effective August 18, 2025:
New pricing model for the US & Canada for parcel pick-ups.
Heavily affects: Companies that rely on daily pickups or use a mix of carriers may lose access to bundled pricing that previously helped reduce fees. Businesses with unpredictable parcel volumes or agreements that included free pickups may now see those charges listed as separate line items on their invoice.
—
Pickup fees could now range from $7.50 to $35.50 per week—or $9 to $22.75 per on-demand stop—depending on service level and schedule.
Dimensions will be rounded up to the next whole inch or centimeter for billing purposes.
Heavily affects: Fulfillments that aren’t measured precisely for cost efficiency, companies that rely on custom or non-standard boxes.
—
For high-volume shippers, even a 1″ increase in dimensional billing can raise per-package costs by $0.20 to $1.50, depending on zone and service level.
Here’s the good news: once you know what to look for, these issues are manageable and often fixable. We’ve helped companies catch recurring charges they didn’t even know they were paying and reroute shipments to avoid unnecessary fees.
We also support contract reviews and negotiations when it makes sense. In many cases, we can offer alternative rates through our network, often at a better rate than what shippers pay through brokers or platforms that add markup without providing proper carrier support. Most shippers assume they’re stuck with the rates they have or that high shipping costs are just part of doing business. They’re not.
The Part they don’t tell you
I set out to focus on recent rate and surcharge changes, but the truth is, it’s about understanding what’s possible when you can see the whole picture.
We’ve had clients who didn’t realize they qualified for alternative programs or were stuck paying penalties simply for not meeting certain minimums, even though better options were available but never presented to them. In some cases, switching to a different carrier made sense, and once we negotiated on their behalf, the savings were clear. In others, we took a close look at their packaging and found small adjustments that made the difference between standard pricing and unnecessary fees. Once those changes were made, the impact was immediate.
This isn’t a one-size-fits-all process. We’ve spent years learning what the carriers don’t expect you to know. The hidden structures are more than just their monthly updates; they encompass the blind spots and overlooked paths that benefit the shipper. That’s where the real value is—and once you know it’s there, you won’t go back to flying blind.


