As the parcel industry continues to grow and evolve, parcel carriers make frequent changes to parcel agreements, rates, accessorials and more. Staying up to date on critical parcel carrier changes is important even for businesses shipping minimal parcel volume.
UPS to Reduce Amazon Volume by Over 50%
Effective Date: Second Half of 2026
In a strategic move, UPS plans to reduce its Amazon volume by more than 50% by the second half of 2026. This shift allows the company to focus on handling a smaller number of higher-value packages, potentially optimizing resources and delivery efficiency.
Late Fees Increase for FedEx and UPS
FedEx Effective Date: June 1, 2025
UPS Effective Date: March 10, 2025
In an unsurprising move after UPS announced increasing late fees in the first quarter, FedEx has now announced late fees rising from 8% to 9.9% effective June 1, 2025. This adjustment aligns with UPS’s earlier announcement and emphasizes the importance of timely payments to avoid additional charges for unpaid invoices. (Source: Parcel Industry News).
UPS Payment Processing Fees
UPS Effective Date: May 19, 2025
A Payment Processing Fee equal to 2% of all other invoice charges will be added to each invoice. The Credit Card Surcharge will no longer apply.
FedEx Disbursement Fee and Duty & Tax Forwarding Fee
FedEx Effective Date: May 2, 2025
FedEx is adjusting the Disbursement Fee and Duty & Tax Forwarding Fee. The Disbursement Fee is related to the cost incurred by FedEx when advancing duties and taxes on behalf of the importer or recipient and is then collected from them. The Duty and Tax Forwarding Fee pertains to the service of forwarding duty and tax bills to the designated payer. Review FedEx’s Service Guide for more information.
FedEx Expands Sunday Delivery
Effective Date: March 2025
In a recent update, FedEx’s Chief Customer Officer Brie Carere announced the expansion of its Sunday residential coverage to two-thirds of the U.S. population, a significant increase from the previous 50% of the U.S. population covered. This expansion is in response to demand from their largest customers, pressures from other carriers (as of 2024, regional carrier OnTrac was delivering 7 days a week to 75% of its network), enhancing convenience and service levels for consumers. (Source: Supply Chain Dive) More information on FedEx’s 7 day delivery can be found here.
UPS Fee Changes in 2025
Effective Date: March 31, 2025
UPS has introduced new fees related to payments and invoicing starting March 31, 2025. Customers making payments by check or wire transfer will now incur a $25 charge, while a $5.00 fee is applicable for each printed invoice. These changes aim to streamline payment processes and possibly encourage electronic payment methods. More information on fees and billing for UPS can be found here.
UPS Paper Invoice Charge
UPS Effective Date: March 17, 2025:
A fee of $10.00 per shipment is applied to the shipper when the commercial invoice is not provided by the shipper in digital form using UPS Paperless® Invoice services prior to the processing of the commercial invoice by UPS.
Other UPS Billing Fees & Changes
UPS Effective Date: March 31, 2025
UPS Printed Invoices will incur a fee of $5.00 per invoice copy. Payments made via check or wire will incur a fee of $25.00 per payment. UPS payors on ACH payments will not be subject to these fees. Fee: A fee of $5.00 per invoice copy will apply for each printed copy of a UPS invoice sent to shippers or other payors.
UPS Zone Updates and Service Enhancements
UPS Implementation Date: March 24, 2025
UPS has implemented changes in applicable zones for specific origin/destination ZIP code pairs. The revised zone charts are now accessible on UPS.com, supporting the company’s ongoing expansion efforts and commitment to maintaining high service levels for customers.
UPS SurePost Rebranded as Ground Saver
UPS Implementation Date: April 2025
SurePost, UPS’s service delivering packages to residential addresses via the USPS, has been rebranded as Ground Saver. However, the service is now limited to the contiguous U.S., excluding Alaska, Hawaii, and Puerto Rico. Earlier this year, UPS raised rates for this service by nearly 10%, offering customers a cost-effective alternative for slower deliveries within the mainland U.S.
Stay tuned for more updates and developments in the parcel industry and small package shipping, as companies like FedEx and UPS continue to adapt to changing market dynamics and evolving customer needs.
