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UPS Rate Increase 2026: How It Impacts Your Business
Understand the 2026 UPS rate increase and its impact on your shipping costs. Strategies to minimize the effect on your bottom line.
January 17, 20262 min read29 views
UPS 2026 Rate Increase: Complete Analysis
UPS announces rate changes annually, typically effective late December. Here's what the 2026 increase means for your business.
Overall Rate Increase
| Category | Expected Increase |
|---|---|
| Ground | 5.9% average |
| Air Services | 5.9% average |
| International | 5.9% average |
| Surcharges | 6-10% (varies) |
Ground Service Changes
| Weight/Zone | 2025 | 2026 | Change |
|---|---|---|---|
| 1 lb/Zone 2 | $9.25 | $9.80 | +5.9% |
| 5 lbs/Zone 4 | $14.50 | $15.35 | +5.9% |
| 10 lbs/Zone 6 | $22.00 | $23.30 | +5.9% |
| 20 lbs/Zone 8 | $38.50 | $40.75 | +5.8% |
Surcharge Increases (Often Higher Than Base)
| Surcharge | 2025 | 2026 | Change |
|---|---|---|---|
| Residential | $4.35 | $4.65 | +6.9% |
| Delivery Area | $4.40 | $4.80 | +9.1% |
| Additional Handling | $16.00 | $17.25 | +7.8% |
| Large Package | $97.00 | $105.00 | +8.2% |
Impact by Business Size
| Monthly Spend | Annual Impact |
|---|---|
| $1,000 | +$720/year |
| $5,000 | +$3,600/year |
| $10,000 | +$7,200/year |
| $25,000 | +$18,000/year |
Mitigation Strategies
1. Negotiate New Rates
| Spend Level | Potential Discount |
|---|---|
| $5,000/month | 15-25% |
| $15,000/month | 25-35% |
| $50,000/month | 35-50% |
Reduce DIM weight charges:
- Right-size packaging
- Eliminate excess void fill
- Consider poly mailers for soft goods
Ship to regional hubs for redistribution.
4. Use atoship Discounts
| Service | UPS Direct | Via atoship | Savings |
|---|---|---|---|
| Ground | List rate | -40% | 40% |
| 2nd Day | List rate | -35% | 35% |
| Next Day | List rate | -30% | 30% |
Timeline for 2026
| Date | Action |
|---|---|
| September 2025 | UPS announces rates |
| October 2025 | Analyze impact |
| November 2025 | Negotiate/adjust |
| December 26, 2025 | New rates effective |
Peak Season Considerations
Remember: Peak surcharges are separate and additive:
| Period | Additional Surcharge |
|---|---|
| Oct 27 - Dec 23 | $1.00-$6.00+ per package |
| Peak week | Higher surcharges |
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