Shipping carriers like UPS and FedEx adjust their rates annually, with most changes going into effect in the new year. While the specific rate adjustments are different for every carrier, they all have one thing in common: shipping rates are increasing in 2026.
Here’s a quick summary of the changes:
- UPS and FedEx are increasing average base rates by 5.9% but actual costs will climb by 7-12% once new surcharges and dimensional rules take effect.
- USPS Ground Advantage is rising by 7.8% (the steepest increase among all major carriers).
- New cubic volume rules from UPS and FedEx will trigger extra fees on a lot more packages.
- Residential delivery surcharges are jumping 6-8%, with some FedEx fees increasing by over 15%
Overall, the 5.9% GRI headlines that you’re seeing from most carriers don’t tell the full story. And there’s a good chance your business shipping rates are rising even more in 2026.
Average Shipping Rate Increases by Carrier
While most carriers are advertising a 5.9% general rate increase for 2026, the actual effective date and specific services vary by carrier. Here’s when you can expect changes depending on who you’re using:
- UPS – 5.9% increase (effective 12/22/25)
- FedEx – 5.9% increase (effective 1/5/26)
- USPS Ground Advantage – 7.8% increase (effective 1/18/25)
- USPS Priority Mail – 6.6% increase (Effective 1/18/25)
- DHL – 5.9% increase (effective 1/1/26)
- Landmark – 5.9% increase (effective 1/1/26)
- Passport – 5.9% increase (effective 1/1/26)
It’s no coincidence that these increases are so similar. UPS and FedEx tend to have general rate increases in the same ballpark to keep things competitive, and then regional carriers like DHL follow suit. USPS operates independently, but adjusts rates based on market conditions and its own financial needs.
But no matter how you look at this, shipping costs are rising across the board for all carriers.
UPS 2026 General Rate Increase
UPS is rolling out a 5.9% average rate increase that goes into effect on December 22, 2025.
But the 5.9% rate hike is somewhat deceiving. Most businesses will likely face increases in the 7-12% range once UPS’s new dimensional rules and surcharges go into effect in late January.
Why Average UPS Shipping Costs Will Actually Be More Than 5.9% in 2026
UPS is layering its general rate increase with certain surcharge rules that will hit certain types of packages harder than others. This is happening in two phases, and the 5.9% increase that everyone is talking about is only phase one.
- Phase 1 – December 22, 2025: Base rates increase across Ground, Air, and International Services for an average of 5.9%.
- Phase 2 – January 26, 2026: New dimensional volume rules that will trigger Additional Handling fees and Large Package surcharges.
So if your business is impacted by any of the new surcharge fees from UPS in 2026, your rates will definitely climb higher than the 5.9% average base increase.
New Dimensional Rules for UPS (Effective 1/26/2026)
As of January 26th, UPS is using both cubic volume AND length plus girth measurements to determine its surcharges. This dual system will trigger surcharge fees on significantly more packages than before.
- UPS Large Package Surcharge: For packages over 17,280 cubic inches
- UPS Additional Handling Surcharge: For packages over 10,368 cubic inches
(You can calculate cubic inches by multiplying length x width x height).
Previously, only length plus girth determined those fees. But under this new system, a package might be able to avoid one threshold but still trigger a surcharge fee under the other.
More UPS Rate Increases Beyond the Base GRI
When you look at the accessorial fees from UPS, you’ll see that most are well above the 5.9% GRI:
- Additional Handling: 6.6% to 7.3% increase
- Large Package: 5.6% to 10% increase
- Residential Delivery: 6.5% increase
- Delivery Area: 6% to 8% increase
- Address Correction 7.4% increase
- Printer Rental Fee: 233% increase (from $3/week to $9.99 per week)
Ecommerce retailers delivering to residential addresses and businesses shipping bulky packages will feel this the most. Long-distance ground shipments from UPS will also be hit with increases above the 5.9% average.
You can access all of the 2026 UPS shipping rates here, including changes and increases.
FedEx 2026 General Rate Increase
FedEx’s 5.9% average rate increase takes effect on January 5, 2026, with additional dimensional rule changes on January 12, 2026.
Combined, these changes will push actual shipping costs higher than the average 5.9% headline being advertised. Most businesses using FedEx will see increases between 7% and 12%.
New FedEx Surcharge Triggers
FedEx added cubic volume measurements to its existing length plus girth criteria. Effective January 12, 2026:
- Additional Handling Fee: Applies to packages over 10,368 cubic inches (length x width x height).
- Oversize Charge: Applies to packages over 17,280 cubic inches OR packages over 100 lbs.
It’s also worth noting that FedEx implemented dimensional rounding back in August 2025. So fractions of an inch are now rounded up, which can trigger these surcharges if they’re borderline.
FedEx Residential Delivery Surcharges Are Even Higher
Depending on the service, FedEx’s residential delivery fees are also increasing more than the 5.9% GRI:
- Residential Express Surcharge: 6.1% increase
- Residential Ground/Home Delivery Surcharge: 8.4% increase
- Delivery Area Surcharges: 6-8% increase
- Adult Signature Required Fees: 15.6% increase
FedEx is also changing how certain home delivery fees are being calculated. Rather than charging per shipment, they’ll be charged per package, triggering additional surcharges for things like Evening Home Delivery and Appointment Home Delivery.
Other Notable FedEx Increases For 2026
- Additional Handling Fees: 5.4% to 7.2% increase (depending on zone)
- Oversize Fees: 5.8% to 10.3% increase (depending on zone)
- Dangerous Goods/Hazmat Fees: 5% to 6% increase
- Declared Value Coverage Fees: 10% increase
FedEx also added new Clearance Entry Fees for Canada-to-US shipments, and international shipments overall can expect total landed increases ranging from 9% to 11% higher than 2025 when you factor in all new costs.
Here’s the official shipping rate change announcement from FedEx.
USPS 2026 General Rate Increase
The US Postal Service is raising rates on shipping services, effective January 18, 2026.
These increases are higher than what we’re seeing from UPS and FedEx (more than 5.9% average). But they’re more transparent in the sense that we’re not seeing a ton of hidden surcharge fees that might apply.
What’s Changing
- USPS Ground Advantage: 7.8% increase
- USPS Priority Mail: 6.6% increase
- USPS Parcel Select: 6% increase
- USPS Priority Mail Express: 5.1% increase
Ground Advantage is the steepest rate hike at 7.8%, making it the highest percentage jump across all USPS shipping services that are going up in 2026.
What’s Not Changing
First-Class Mail stamps and other mailing services won’t see price increases in January 2026. The Postal Service made an announcement saying it won’t raise prices for market dominant products (just competitive shipping services).
The next scheduling rate change for USPS mailing services is in July 2026.
Final Thoughts
These 2026 shipping rate increases are significant. Beyond the 5.9% average general rate increase, it’s hard to ignore that both UPS and FedEx are expanding their dimensional rules and layering surcharges.
Once you factor in these accessorial fees and how packages that didn’t previously qualify for a surcharge fee now do, certain businesses will definitely be hit harder.
The biggest takeaway here is that you can’t budget your 2026 shipping costs based on the 5.9% headline.
You need to run actual cost projections based on your shipping data from the past year, and factor in the specific surcharges that apply to your business. The real number will likely be closer to 7-12%.