UPS initiated its first 2026 holiday demand surcharges on September 27, with FedEx following on September 28. Unlike flat holiday fees, these early surcharges are selective—they apply only to parcels meeting specific criteria that increase carrier handling costs.
What’s Subject to Holiday Surcharges Right Now
- Oversize packages requiring additional handling or special treatment
- Large packages approaching or exceeding standard dimension limits
- Maximum-size parcels that trigger carrier oversized-package rules
Standard-sized packages within normal weight ranges are not yet subject to these fees; the surcharge wave targets higher-cost-to-handle inventory specifically.
Why This Matters for Your FBA & FBM Operations
If you source or ship bulky items, oversized products, or anything near carrier dimension thresholds, your logistics costs are increasing sooner than in previous years. This affects both your own fulfillment (if using UPS/FedEx for FBM) and any pre-shipment costs to Amazon warehouses.
Review your current product mix now—especially Q4 bestsellers—to identify which SKUs will hit these surcharges. Factoring these costs into pricing, promotions, or sourcing decisions now avoids margin surprises in peak season.
How Squatio Helps
Prospect (Product Database) makes it easy to filter and analyze your catalog by dimensions and weight, so you can quickly identify which products in your current or planned inventory will trigger oversize surcharges under the new UPS and FedEx structure. This visibility lets you model cost impact per SKU and adjust pricing or sourcing strategy before the peak season rush.
What proportion of your current FBM or pre-shipment volume typically falls into oversize categories, and how are you adjusting for these earlier surcharges?
Source: https://www.ecomcrew.com/ups-and-fedex-holiday-demand-surcharges-start-with-oversize-packages/