Shipping in 2026 is about to get more expensive. FedEx and UPS are both increasing their rates by an average of 5.9%. But don’t let that number fool you — your actual costs will likely climb even higher. With UPS leading the charge on December 22, and FedEx following two weeks later, these increases will have a significant impact for shippers. The real challenge lies in the hidden complexities behind the changes. It’s essential to understand them so you know how your costs will be affected and what you can do about it.

Here's your guide to the FedEx and UPS rate increases for 2026. Jump to:

• A look back at the FedEx and UPS GRIs
• Important changes for 2026
• How the FedEx and UPS rate changes will affect your costs in 2026
• What you can do to mitigate the effects of the FedEx and UPS rate increases

A look back at the FedEx and UPS GRIs 

This marks the third consecutive year that both carriers have announced an average increase of 5.9% — a level first introduced in 2022 after several years of 4.9% hikes. In 2023, rates climbed even higher to 6.9%, coinciding with a surge in shipping demand fueled by pandemic-driven e-commerce growth. The return to a 5.9% increase in 2024, 2025, and now 2026 shows that while demand has stabilized, the carriers continue to adjust pricing to offset expenses and network investments. 

Some important quick facts about the new FedEx and UPS rates:

• The new FedEx rates take effect on January 5, 2026, while the UPS rates take effect two weeks earlier on December 22, 2025. Notably, UPS is raising its rates sooner, capturing more shipments moving through the end of peak season. 
• The 5.9% average doesn’t take surcharges into account — many of which are increasing by more than 5.9%. When you are reviewing your shipping costs, its essential to budget for increases to surcharges as well.
• How much your costs actually go up in 2026 will be closer to 8-12% and will depend on several different factors. The services you use, the surcharges applied, your shipment dimensions and weight, and how far your shipments are traveling all have an effect. 

Important changes for 2026

The end of the year is often hectic for many businesses, with 2025 proving no different. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.

Ship early

We can’t stress this enough! The closer we get to Christmas, the higher the demand on carrier networks. While major disruptions aren’t expected, the seasonal surge in shipments and subsequent strain on carrier networks can still lead to delays. Being proactive and shipping early gives you extra time and flexibility if things slow down. This is especially important for time-sensitive packages that need to be delivered by Christmas. Regardless of who you ship with, the holiday season can be unpredictable; plan ahead and build in some buffer time to help ensure your packages reach their destinations on schedule.

Review holiday shipping deadlines

For retailers, this is especially important. As customers place their orders for holiday gifts, they’ll want to know that they’ll receive them before the big day. FedEx and UPS have released their shipping deadlines, so make sure to review them and plan accordingly. That way, you’ll be able to manage expectations appropriately and keep your customers happy.

Peak season surcharges

Both FedEx and UPS are applying demand surcharges for the 2025 seasonal shipping surge. These fees add extra costs to packages, especially hitting residential deliveries and oversized packages the hardest during peak weeks. 

The first wave of demand surcharges runs from late September through the end of November. They range from $0.40 to $2.20 for residential deliveries and select ground and expedited services.

All of the demand surcharges then increase the week of Thanksgiving through the week of Christmas. The surcharges for standard-sized shipments range from $0.60 to $3.55 during this time. On top of that, if your package is considered oversized or requires additional handling, you can expect to pay up to an additional $545. 

For the final wave, the surcharges mirror those accessed at the beginning of peak season and last until January 17th for UPS and 18th for FedEx.

One important thing to note is that throughout the entire peak season, many of these additional fees adjust weekly or even increase based on your account’s shipping volume. To avoid surprises, review the published information and factor these seasonal adjustments into your budgets.

Prepare for the 2026 rate increases

Don’t forget that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers have announced another average 5.9% rate hike for 2026.   

In the complex world of logistics, the carrier network you utilize can either optimize your shipping operations or bring them to a grinding halt. One strategy that is often overlooked is partnering with regional less-than-truckload (LTL) freight carriers. Regional LTL carriers play a crucial role in the supply chain ecosystem by offering a focused and localized approach to freight transportation. Unlike their national counterparts, regional carriers operate within specific geographic areas, so they've got the inside scoop on what makes your local logistics tick. It's like having a shipping partner who knows the shortcuts, secret spots, and best routes – because they're in your backyard.

In this article, we'll delve into the top 5 advantages of leveraging regional LTL carriers for your shipping needs and explore how they can transform your supply chain efficiency.

1. Lower Damage and Loss Claims. Minimizing freight damage and loss is a top priority for any shipper. Consider regional LTL carriers as your secret weapon in the battle against damage. They excel in this aspect by offering better handling and protection of shipments. With a smaller service area, these carriers can ensure more direct routes and fewer touchpoints, reducing the likelihood of damage during transit. This commitment to careful handling translates into fewer claims and greater peace of mind for shippers.
2. Lower Minimum Charges. There’s no way around it - minimum charges are a buzzkill. National carriers typically have higher minimum charges due to their extensive network coverage. Regional LTL carriers, on the other hand, offer a more favorable structure for small to medium-sized businesses. By catering to a smaller service area, these carriers can maintain cost-effective minimum charges, making them an attractive choice for shippers looking for a cost advantage.
3. Shorter Transit Times through a Smaller Carrier Footprint. Efficient supply chains rely heavily on fast transit times. Regional carriers shine in this aspect as their smaller service footprint translates to quicker deliveries. With less ground to cover, shipments can move swiftly through streamlined routes, reducing overall transit times. Real-world examples have shown that regional LTL carriers consistently outperform national carriers when it comes to delivering on time.
4. Top Notch Customer Service and Communication. Who doesn't love getting the VIP treatment? Customer service plays a pivotal role in freight shipping, where timely updates and proactive support are crucial. Regional LTL carriers excel in this domain by providing a more personalized and responsive customer experience. You can establish direct lines of communication with local carrier representatives who possess an in-depth understanding of the regional landscape, ensuring effective troubleshooting and issue resolution.
5. Cost-Effective Shipping Solutions. For businesses that frequently ship within a specific geographic area, regional LTL carriers offer budget-friendly solutions. The proximity of the carrier's service area to the shipper's location means reduced transportation costs and potentially fewer accessorial charges. Say goodbye to excessive charges, and hello to optimizing your freight spend.

The Regional LTL Carrier Advantage is Clear
It’s clear - using regional LTL carriers puts you on track to shipping smarter. From minimizing damage to providing faster transit times and superior customer service, these carriers are tailor-made for businesses seeking localized, cost-effective, and efficient freight transportation. As you evaluate your shipping options, consider the strategic benefits that regional LTL carriers bring to the table. By making the right carrier selection, you can optimize your supply chain and elevate your shipping strategy. PartnerShip has a vast network of reputable carriers, including regional LTL freight carriers that service your area. 

Contact our team today to uncover how you can benefit from utilizing regional carriers.

With the holiday season just around the corner, shippers need to be extra mindful of their LTL schedules. In addition to the usual cyclical increase in freight loads, the industry has also had a volatile year, with carrier closures and limited capacity causing more hiccups. As a result, transit times are a bit uncertain.

We want to make sure that your shipments reach their destinations on time and without any drama along the way. When planning, be sure to check which days carriers will be closed in our helpful guide below:

Freight carrier closures

• Saia LTL Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
• XPO Logistics – will be closed November 23 – 24, December 22 – 25, and January 1.
• ArcBest – will be closed November 23 – 24, December 25, and January 1.
• R+L Carriers – will be closed November 23 – 24, December 25, and January 1.
• Estes – will be closed November 23 – 24, December 25 – 26, and January 1.
• Dayton Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
• Pitt Ohio – will be closed November 23 – 24, December 25 – 26, and January 1.
• AAA Cooper – will be closed November 23 – 24, December 25 – 26, and January 1.
• Midwest Motor Express – will be closed November 23 – 24, December 25 – 26, and January 1.
• Dohrn Transfer Company – will be closed November 23 – 24, December 25 – 26, and January 1.
• TForce Freight – will be closed November 23 – 24, December 25 – 26, and January 1.

Is it time for your business to consider a drop trailer and / or drop and hook freight program? 

First, let's answer what is a drop trailer? It is when a carrier brings a tractor to the loading dock and picks up a previously loaded trailer. Drop and hook takes drop trailer shipping one step further. A carrier will arrive with an empty trailer to drop, pick up a loaded trailer, and continue on to the destination.

What is a drop trailer used for? Many shippers consider drop trailer programs because of the hours of service rules issued by the Federal Motor Carrier Safety Administration (FMCSA) which are more strictly monitored by the ELD mandate.

Before the change to the hours of service rules, if a driver waited three or four hours or more while their trailer was loaded, they could make up the time by driving more hours. Now, with an ELD required for every tractor, load time and detention is a significant consideration because it cuts into the 14-hour on-duty shift rule.

To illustrate, if a carrier has to drive an hour to the shipping origin, then wait five hours to get loaded, that means he can only drive for 8 hours after leaving for the destination. If he averages 60 mph, he can travel 480 miles. If the same driver picked up a loaded trailer, he could drive 10 hours before reaching the 11-hour driving limit. If he averages 60 mph, he can travel 600 miles.

What is a drop trailer doing for your supply chain? Drop trailer programs help shippers and carriers plan more effectively for deliveries and outbound shipments so it is important for them to align their schedules. Without drop trailers, a carrier must arrive within a narrow appointment window for employees to load or unload the trailer. Depending on how the appointment fits into their on-duty schedule, and considering traffic conditions, weather, breakdowns and other unexpected events, the driver could be forced to wait for hours, or miss the appointment altogether. In these situations, late delivery fees, detention fees, and a negative vendor scorecard are typically the unpleasant results.

Drop Trailer Benefits for Shippers:

• Smoother supply chain operation. You can load or unload a trailer at your convenience or when staffing levels are adequate; no more paying overtime to load or unload when a truck is early or late.
• Great for time-consuming loads, like floor-loaded freight.
• Less congestion in docks, improving overall safety of operations.
• Avoid costly driver or truck detention accessorial charges.
• Higher on-time delivery percentages. On-time freight departure times substantially increase the odds of an on-time arrival.
• Decrease fines. With strict retail Must Arrive By Date (MABD) requirements becoming more common, drop-trailer shipping can help your carrier arrive on time and minimize the fines associated with missing a delivery window.
• Better retailer relationships. When you fulfill MABD requirements, your vendor scorecard improves and you are seen as a more desirable vendor partner.

• Better planning. You decide when you pick up (and drop off) trailers.
• No more waiting to pick up a load or be live-loaded; spend more time driving to the destination.
• Great for time-consuming loads, like floor-loaded freight.
• Higher on-time delivery percentages.
  

There are a few circumstances of which to be aware when considering a drop trailer program. What is a drop trailer cost? Every trailer that a carrier takes out of over-the-road service is lost revenue, so to recoup it, there will be a cost for a drop trailer, either on the front end or back end (or both). Of course, this cost will pay for itself because there should never be any detention fees.

Drop trailers should not become warehouses; the maximum time a trailer should sit is a week. In most drop trailer programs, trailers turn two or three times a week. Because of this, produce and perishable goods aren't well suited for drop trailers, since keeping the goods fresh is necessary.

Finally, there is a lot of up-front work to implement a drop trailer program. Not all carriers do drop trailers so finding one that does can be time-consuming. Trailers make carriers money so if one of your carriers doesn’t want to drop a trailer, simply look at using a different one.

A drop trailer or drop and hook program is a perfect opportunity to use a freight broker. Working with a broker allows you to tap into their network of carriers and take advantage of their expertise in finding carriers that will drop trailers. The truckload shipping experts at PartnerShip will work with you to find a drop trailer or drop and hook carrier and get you the best freight rates possible. We know the lanes, we know the rates and we will help you ship smarter. Contact us today to learn more about setting up a drop trailer program!

The freight industry can be a confusing place. It's pretty easy to get lost in terminology, and even experienced shippers can find themselves puzzled by basic questions. For example: what's the difference between a freight broker and carrier?

It turns out there are actually three key distinctions between the two parties, and understanding how each factor affects your load is important for smooth shipping.

Key Distinction #1: Responsibility to shipper

When looking at a freight broker and carrier, it's important to understand the primary responsibility of each party in the physical transportation of your freight. 

What is a carrier?

A carrier refers to the company, or operator, that directly handles the transportation of your shipment. Common national carriers include TForce Freight, XPO Logistics, ArcBest, and more. Carriers can specialize in less-than-truckload (LTL), dedicated truckload freight, or even specialized services such as refrigerated or oversized freight equipment.

What is a freight broker?

A freight brokerage is a company that serves as a transportation intermediary rather than directly operating a truck fleet and physically moving your freight. A freight broker's job is to contract available loads with a carrier and find an acceptable rate within a specified time frame according to the shipper. The freight broker cuts down the time and effort it may take for a company to look for its own carriers and may decrease costs by shopping quotes.

Key Distinction #2: Geographical restrictions

Freight carriers and brokerages serve distinct areas in the U.S. and sometimes overseas. Knowing their strongest network locations can guide your business decision.

Where do carriers operate?

Common carriers, like XPO Logistics, primarily move freight loads. They have hubs in high-demand areas offering maximum truck availability and competitive pricing. For regions outside these hubs, they may have limited schedules or collaborate with regional carriers for rural deliveries. These regional carriers are smaller businesses operating within a specific area and have exceptional proficiency within their zone. Essentially, national carriers can deliver anywhere in the U.S., but for remote areas, they might need to involve regional carriers which could result in longer delivery times.

Where do freight brokers operate?

Third-party logistics providers don't need to manage assets or trucks, so they can operate from any location. Many have main offices in popular shipping areas and satellite offices across the country. Some specialize in certain industries, like oversized freight or cross-border shipping. A broker can also focus on building relationships with transportation carriers for increased flexibility and specialized service. 

Key Distinction #3: Liability for claims

In damage claims, carriers are generally legally liable due to the Carmack Amendment, while brokers aren't. However, brokers can and should aid in dispute resolution. With blurred lines between the two parties, it's important to explore them in detail.

What is a carrier's liability?

Per the Carmack Amendment, the carrier owns the items while they are being transported. When the carrier agrees to transport something, a deal is made based on the shipper load and count on the bill of lading (BOL). The shipper signs this document, saying that they packed and counted everything correctly. From the moment the goods are picked up until they are delivered, the carrier is in charge. If anything gets lost or damaged, the carrier has to answer for it. If there's a problem, you make a claim with the carrier, not the broker who set up the transportation.

What is a broker's liability?

From a legal perspective, carriers, not freight brokers, are responsible for any freight damage. However, good freight brokers have claims experts who know about shipper rights, liability limits, and claims filing. While carriers must handle damaged freight, brokers have the ethical duty to guide shippers and assist during complex situations like damage or loss claims.

The advantage of using a freight broker

When you work with a quality freight broker, you gain expertise, increase operational flexibility, and add a cost-saving alternative that you may not have when working directly with a carrier. Working with PartnerShip can ensure you have a team in your corner to help you navigate even the most unique shipping challenges. 

In today's interconnected business landscape, small businesses heavily rely on efficient and reliable shipping services to maintain their supply chains and meet customer demands. With the potential UPS strike looming, it is crucial for small businesses to understand the implications and take proactive measures to safeguard their operations. In this article, we’ll delve into the details of the potential UPS strike, why small businesses should care, and provide actionable steps to protect their supply chains during this uncertain period.

Understanding the UPS Strike

Negotiations between UPS and the Teamsters, the union representing UPS employees, are ongoing and have reached a critical point. While it is uncertain whether a strike will occur, it is essential for small businesses to be prepared for such a scenario. The Teamsters and UPS have until August 1 to reach an agreement. The impact of a UPS strike can be significant, disrupting supply chains and causing delays in deliveries, which can have far-reaching consequences for businesses of all sizes.

Implications for Small Businesses:

• Disrupted Operations: Small businesses heavily reliant on UPS services may face disruptions in their day-to-day operations, such as delays in receiving inventory, shipping products to customers, and meeting delivery deadlines. This can lead to dissatisfied customers, decreased revenue, and potential damage to the brand reputation.


• Increased Costs: In the event of a UPS strike, small businesses might be forced to seek alternative shipping solutions, which could come at a higher price. Exploring other shipping carrier options and securing competitive pricing now will be a necessary lifeline.


• Supply Chain Bottlenecks: A UPS strike can cause a ripple effect throughout the entire supply chain. Suppliers, manufacturers, and distributors relying on UPS may experience delays in receiving raw materials or components, leading to production slowdowns and potential stock shortages. Small businesses need to proactively address these bottlenecks to mitigate the impact on their operations.

Protecting Your Supply Chain:

• Diversify Shipping Partners: Small businesses should consider partnering with alternative shipping providers such as FedEx, DHL, or regional carriers. Research and negotiate discounted rates with these providers well in advance, ensuring they can handle the business's shipping volume during a UPS strike.


• Plan Ahead: Developing contingency plans and forecasting potential disruptions is crucial. Small businesses should communicate with suppliers, manufacturers, and customers, informing them of potential delays and seeking alternative arrangements if necessary. Implementing buffer inventory or safety stock can help mitigate supply chain disruptions during this period.


• Explore Local Sourcing: In case of a UPS strike, small businesses can explore local sourcing options for raw materials or components. This reduces the reliance on long-distance shipping and minimizes the impact of any potential disruptions in the transportation network.


• Optimize Inventory Management: Efficient inventory management becomes paramount during uncertain times. Small businesses should analyze their inventory levels, streamline their procurement processes, and leverage technology solutions to track and manage inventory in real-time. This ensures the availability of essential products and reduces the risk of stockouts during a UPS strike.


• Communicate with Customers: Proactive and transparent communication with customers is crucial during periods of disruption. Small businesses should keep customers informed about potential delays, set realistic expectations, and provide updates throughout the process. Customer loyalty can be maintained by offering alternative shipping options or discounts during this challenging period.


• Control Your Costs: One effective way for small businesses to safeguard their supply chains and keep costs under control during a potential UPS strike is by exploring discounted shipping options. PartnerShip works with over 130 associations to provide members with substantial discounts on FedEx services through the FedEx Advantage program. By signing up for the program, businesses can mitigate the financial impact of a UPS strike while maintaining reliable shipping services. These discounts can help offset any potential increase in shipping costs and ensure that businesses can continue to fulfill orders and meet customer expectations without compromising their bottom line. Contact our team to find out if you qualify for the FedEx discounts and how to get started.

From Disruption to Resilience

While the potential UPS strike poses challenges for small businesses, it also presents an opportunity to reassess and strengthen their supply chain strategies. By diversifying shipping partners, planning ahead, exploring local sourcing options, optimizing inventory management, and maintaining open communication with customers, small businesses can navigate through potential disruptions and emerge stronger. Being prepared for contingencies ensures business continuity and safeguards the customer experience, even during challenging times.

When it comes to the carriers that can move your freight, "more is better", right? While that may be true for some, the quality of your partner carriers may be more valuable than quantity. If you're looking to add new carriers to the mix by working with a freight broker, make sure to ask the big questions to determine if their network is right for your needs.

As we near the end of 2022, it’s crucial to plan ahead for shipping through the holiday season.  Freight demand is starting to show signs of decreasing but continues to strain available carrier capacity. As a result, transit times are still a bit unpredictable. 

Planning your shipping schedule during the final months of the year will be extra important. To avoid extra stress, take note of when your carriers will be closed during the holidays. 

Freight carrier closures

• Saia LTL Freight – will be closed November 24 - 25, December 23 - 26, and January 2.
• YRC Freight – will be closed November 24 – 25, December 24 – 26, 31, and January 2.
• XPO Logistics – will be closed November 24 – 25, December 23 – 26, and January 2.
• ArcBest – will be closed November 24 – 25, December 24 – 25.
• R+L Carriers – will be closed November 24 - 25, December 24 - 26, and January 2
• Estes – will be closed November 24 – 25, December 23 – 26, and January 2.
• Dayton Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
• Pitt Ohio – will be closed November 24 – 25, December 23 – 26, and January 2.
• AAA Cooper – will be closed November 24 – 25, December 23 – 26, and January 2.
• TForce Freight – will be closed November 24 – 25, December 23 – 26, and January 2.

Avoid being left out in the cold this holiday season

Freight shipping during peak shipping months can be extra-challenging, but you’re not alone. With over 30 years of holiday seasons under our belt, the freight experts at PartnerShip can help you ship smarter. 

Please note that our office will be closed November 25-26, December 26, and January 2 so that we can celebrate with our families. Happy Holidays!

As you prepare your store for the influx of orders that come with the holiday season, you’re going to want to keep an eye on the shipping deadlines. Both FedEx and UPS have announced the last dates you can ship your orders and make it in time for a Christmas delivery.

It’s important to note these deadlines because demand surges this time of year. The carriers' networks are already strained, and it’s only going to get worse the closer we get to the holidays. To keep your customers happy and set the right expectations, we recommend clearly communicating the shipping cutoff dates and adding in extra days in case of delays.

FedEx has published a complete visual list of the last days to ship. Here are some highlights for domestic shipments:

• December 8 for FedEx Ground Economy
• December 14 for FedEx Ground and FedEx Home Delivery
• December 20 for FedEx Express Saver
• December 21 for FedEx 2Day and 2Day AM
• December 22 for FO, PO, SO, and Extra Hours
• December 23 for FedEx Same Day

UPS has also created a list of the last days to ship for Christmas delivery. Unfortunately, one thing that is missing is a specific cutoff date for Ground shipments. You will need to get a quote on the UPS website instead. For domestic UPS air shipments, the dates are as follows:

• December 20 for UPS 3 Day Select
• December 21 for UPS 2nd Day Air
• December 22 for UPS Next Day Air services

It’s also important to note that service guarantees are currently suspended for both FedEx and UPS ground services. It's also suspended for select air/express services. The main takeaway? You’ll want to encourage your customers to order early and do what you can to add in extra days when setting delivery expectations.

If you're looking for any additional guidance or need a way to lower your small package costs, PartnerShip can help. Contact our team today.