Big Changes Are Coming for Big Packages
What Brands Shipping Large Packages Need to Know Now
What's New – Q2 2025 Oversized Surcharge Changes
UPS (Effective August 17, 2025)
Additional Handling Charge (AHC):
Now triggered when cubic volume exceeds 8,640 in³
No longer based on length + girth
New surcharge tiers for Zone 7+
UPS Large Package Surcharge (LPS):
Effective August 17, 2025, UPS will revise its surcharge structure for oversized packages. AHC and LPS will no longer be based on length + girth but instead on cubic volume. Packages over 110 lbs will now trigger LPS, and new Zone 7+ pricing tiers will apply.
Applies when a package's cubic volume exceeds 17,280 in³.
Note: UPS uses a dimensional weight divisor of 139 for daily rates.
NEW: Any package over 110 lbs will now trigger LPS
New Zone pricing structure
Sample UPS LPS Charges by Zone (Residential):
These rates reflect current 2025 residential surcharge pricing for oversize parcels and show the dramatic cost climb as zones increase.
Impact: Boxes that previously incurred AHC may now be hit with the higher-cost LPS instead, especially those over 110 lbs. The result? More shipments exceeding $300–$305 in surcharges alone.
FedEx (Effective January 6, 2025)
Additional Handling Surcharge (AHS):
Triggers: >50 lbs domestic, >70 lbs international
Dimensional triggers: over 48", second side >30", L+G >105"
Zone 7+ surcharge tiers: up to $55.00 per package
As of January 6, 2025, FedEx revised its AHS and Oversize criteria. This includes a new 40-lb minimum billable weight for packages triggering AHS based on dimensions.
Oversize Charges:
Applies when L+G >130"
Top-tier Zone 7+ rate: $305 per residential package
FedEx Oversize Charges: Effective August 17, 2025, FedEx will implement new criteria for its Large Package Surcharge (LPS)
As zones increase, so does the surcharge impact—especially for residential deliveries. These fees now account for a significant share of total shipping cost per package.
What Was Implemented – Jan–May 2025
UPS Fuel Surcharge Increase: On May 26, 2025, UPS raised its Ground and Saver fuel surcharge by 1%, increasing from 18.0% to 19.0%.
FedEx Import Surcharge from China/Hong Kong: Effective May 2, 2025, FedEx added a $0.45/lb import surcharge (minimum $1) on shipments entering the U.S. from China and Hong Kong.
Late Payment Fee Increase:
FedEx will increase its late payment fee from 8% to 9.9% starting June 1, 2025.
UPS: Payment Processing Fee (UPS, May 19): A new 2% fee on most invoice charges
Cost Impact for Oversized Shipments
2024 vs. 2025 Comparison
Example Shipment:
Weight: 35 lbs
Dim weight: 90 lbs (52" x 8" x 30")
Declared value: $6,500
In some cases, surcharges now make up 85% of the total shipping cost.
What You Can Do Now
Audit Your Carrier Invoices
→ Identify hidden surcharge exposure, billing errors, and dimensional penaltiesRenegotiate Contracts Strategically
→ Push for better DIM divisor terms, zone discounts, and oversized fee concessionsDiversify Your Carrier Mix
→ Regional carriers and hybrid services may offer cost-effective alternatives for large boxes
Effective Dates Summary
Oversized costs are rising fast — and many brands don't even see it happening.
If you're offering free or flat-rate shipping on bulky items, you're likely absorbing a margin-killer.
Need help navigating these changes? ICC Logistics is here to help you avoid margin erosion and uncover savings before these surcharges hit your bottom line.