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Your Complete Guide To UPS® Fees and Surcharges

If your business regularly handles small package shipping, unexpected costs can sneak onto your invoices and quietly chip away at your profit margins. When your actual UPS shipping spend exceeds your forecast, there's a good chance hidden UPS surcharges or overlooked parcel fees are to blame.

Some of these charges are avoidable. In fact, you might be able to sidestep them by adjusting how you package goods, schedule pickups or verify your shipping labels. Others are standard and harder to eliminate. But if you know what to expect ahead of time, you can budget more accurately and avoid costly surprises.

This guide walks you through the most common UPS shipping fees and what you can do about them. And Unishippers is here to help with your parcel shipping requirements!

What are parcel fees and surcharges?

Every UPS shipping invoice starts with a base rate. This rate is calculated based on key factors like the package's size, weight, origin, destination, delivery speed and any custom contract pricing your business may have.

However, when your shipment requires services beyond standard transportation, UPS — like all major carriers — applies extra charges. These additional costs come in the form of UPS fees and surcharges, which are added to your final parcel invoice.

To help you better understand what to expect, we've grouped the most common UPS surcharges for small package shipping by the different segments of the shipping process. This will give you a wider view of shipping costs and help you budget to protect your profits.

Pickup-Related Fees and Surcharges

While UPS offers a variety of pickup options to fit your shipping needs, many of these come with added parcel fees. You can avoid some of these charges by dropping packages off at a UPS location or drop box. But for businesses handling higher small package shipping volumes, that's not always practical.

Each pickup option carries different costs, so be sure to consult with your third-party logistics provider (3PL) and refer to the UPS Rate & Service Guide for the most accurate pricing. In the meantime, here's a breakdown of the available UPS pickup options:

Daily Pickup

Ideal for businesses with consistent shipping needs, this option schedules a UPS driver to arrive at your location around the same time each weekday.

Daily On-Route Pickup

A more economical and flexible solution, this service allows a driver to check for packages while already making deliveries in your area. Pickup times may vary day to day.

UPS Smart Pickup®

With this tech-enabled option, your shipping system can automatically alert UPS to pick up your packages — same-day or next-day — based on when you process a shipment.

Day-Specific Pickup

Need pickups only a few days a week? This option lets you choose between one and four designated pickup days, Monday through Friday. The UPS surcharge varies based on how many days you select.

UPS On-Call Pickup®

This allows you to schedule a UPS driver to pick up shipments from a specific address. Same-day requests cost more than future-dated ones, and this service may also trigger other UPS surcharges like residential, area or fuel fees.

UPS On-Call Pickup® Area Surcharge & Residential Surcharge

If you schedule a pickup at a residential location or in a ZIP code classified as high-cost, UPS applies an additional Area Surcharge and a Residential Surcharge. In some cases, a Remote Area Surcharge (covered in the next section) may also apply.

Destination-Related Fees and Surcharges

Some deliveries are simply more expensive for carriers to make. Whether it's a private residence, a mountain town or an off-the-grid island, reaching these destinations often means longer routes and fewer packages per stop. To offset these related costs, UPS applies a range of destination-based surcharges. Here's a closer look at what may appear on your invoice depending on where your UPS shipping is headed:

Residential Surcharge

This UPS fee applies when a package is delivered to a residential address — including homes or businesses that operate out of one. The surcharge amount can vary based on the UPS shipping service you use. Fortunately, UPS Ground shipments within the 48 contiguous states are exempt, and UPS Ground Saver® does not incur this fee even when delivering to Alaska or Hawaii.

Delivery Area Surcharge

Certain ZIP codes that are rural, remote or difficult to access trigger this parcel fee, most commonly with air services rather than ground. It's typically a bit lower for commercial addresses than residential ones.

Remote Area Surcharge

For harder-to-reach destinations — such as isolated ZIP codes in Alaska, Hawaii and some rural areas in the continental U.S. — UPS applies a higher Remote Area Surcharge to account for the added delivery effort.

Destination Outside Service Area

This fee only applies when you're using UPS Next Day Air® Early service and request delivery to a location beyond the regular service coverage. It's a niche fee, but one to note for time-critical shipments.

Extended Area Surcharge

Although primarily associated with international shipments, this UPS surcharge can also show up on some domestic deliveries. It applies to destinations that are especially remote or difficult to access, such as islands, national parks or military bases with limited infrastructure.

Delivery-Related Fees and Surcharges

With UPS shipping, not every package delivery follows a standard path. That means some delivery scenarios require special handling, which can result in additional UPS surcharges. Below are the most common UPS fees tied to special delivery requirements:

Proof of Delivery (POD)

Need confirmation that your package made it to its destination? For a small fee, UPS can send you official delivery details via email, fax or mail. This documentation includes delivery time, the full address and (when available) the name and signature of the person who accepted the shipment.

Direct Delivery Only

This fee-based option prevents the package from being rerouted, redirected or delivered to a different address. It's especially useful for high-value or sensitive items when you want to reduce the risk of delivery errors or fraud.

Signature Required

If you want a record of who accepted your shipment — whether to resolve delivery questions or reduce disputes — UPS can obtain a signature at delivery. Alternatively, they may use an electronic release authorization, depending on the situation. This service comes with a fee.

Adult Signature Required

To add an extra layer of security, UPS offers this option for a fee. It ensures the parcel is only released to an adult (21 or older) who provides a valid, government-issued photo ID at delivery.

Deliver to Addressee Only

If you want to specify that only the person listed on the shipping label can pick up or receive the package (no neighbors, household members or coworkers), you'll need to specify Deliver to Addressee Only for an extra fee.

UPS Delivery Intercept®

Sometimes plans change. If you need to redirect a package after it's already been shipped, UPS Delivery Intercept® lets you request a return to sender, a new delivery address or a delayed delivery date. This service includes a fee — typically lower if requested online rather than by phone — and may include extra UPS surcharges if rerouting adds distance or complexity.

Charges Related To Package Size and Packaging

Oversized, overweight or irregularly packaged parcels can disrupt carrier efficiency. And that means added costs for shippers. To account for the extra space, handling time and effort required, UPS applies surcharges tied to packaging and dimensions. These charges vary based on size, weight and shipping zone, so it's always a good idea to review current UPS shipping rates. But below is a rundown.

Domestic Large Package Surcharge (LPS)

In late 2025, UPS will be updating how LPS applies to domestic packages.

  • Length + Girth Removed: LPS will no longer be triggered based on combined length plus girth for domestic shipments.
  • New Size Rule: Packages over 17,280 cubic inches will now incur LPS.
  • New Weight Rule: Packages weighing over 110 pounds will now incur LPS.
  • Other Factors: Existing LPS criteria (such as certain dimensions) remain in place, with minor rounding adjustments.

Domestic Additional Handling Charge (AHC)

UPS has also updated AHC criteria for domestic shipments:

  • Length + Girth Removed: AHC will no longer be triggered based on combined length plus girth.
  • New Size Rule: Packages over 8,640 cubic inches will now incur AHC.
  • Other Factors: Current AHC criteria still apply, with minor rounding changes.

Over Maximum Limits

Some shipments are simply too large for small package shipping. If a parcel exceeds 150 pounds, 108 inches in length or 165 inches in length plus girth, UPS may reject it outright. But if the item is discovered in transit, it will trigger the Over Maximum Limits charge — a hefty $1,325 per package in 2025. UPS may attempt delivery or choose to return the shipment at the shipper's cost.

How To Detect Size-Related Charges

To avoid surprise parcel fees, always input your package's exact weight and dimensions into a transportation management system (TMS) like myUnishippers®. It's one of the most effective ways to spot and account for extra charges up front. And if your shipments are consistently pushing size limits, it might be time to explore less-than-truckload (LTL) freight as a better fit. Or consider UPS Hundredweight Service, which consolidates multiple ground or air packages into a single shipment for more efficient, cost-effective delivery.

Charges Related To Shipping Special Contents

Some shipments require extra attention due to the nature of their contents. When you're sending materials that involve safety risks or require special handling, UPS applies additional UPS surcharges to account for that complexity.

Dangerous Goods (Hazardous Materials)

Shipping hazardous materials? You'll be charged an extra fee, the amount of which depends on the UPS shipping service used and whether the materials are classified as accessible or inaccessible during transport. To ship these items, you must have a UPS Dangerous Goods Agreement and a Scheduled Pickup account. You'll also need certification from the Department of Transportation.

Some exceptions exist including certain small quantities or specific items. But compliance rules are strict, so be sure to review all requirements in detail before shipping. Mishandling these regulations can lead to delays, fines or rejected shipments.

Dry Ice

The UPS Dry Ice fee is a special handling surcharge applied when you ship packages that contain dry ice (solid carbon dioxide) even if the shipment does not include other hazardous materials.

Charges Related To Shipping Errors, Problems or Inaccuracies

Some of the most frustrating — and avoidable — UPS fees come from preventable mistakes. Errors and inaccuracies in shipping details can trigger unexpected parcel fees that add up quickly. The good news: with the right processes, many of these costs can be minimized or eliminated.

Address Correction

If the delivery address on your label is incomplete or incorrect, UPS will attempt to find the correct address and complete the delivery but not without charging a UPS surcharge. Always double-check your address details, including suite or unit numbers. Also remember that UPS shipping does not deliver to P.O. boxes.

Missing/Invalid Account Number or Refusal Fee

This fee is triggered when a shipment is billed to an incorrect, missing or unauthorized UPS account number. This includes situations where a third party or receiver fails to pay the charges or lacks billing authorization.

Special Handling of Undeliverable Shipments

If a domestic shipment can't be delivered, is refused or deemed undeliverable, UPS will return the package and bill you for the return journey. The return method matches the original UPS shipping service. For example, ground shipments are returned via UPS Ground.

Missing PLD Fee

When you generate a label using a transportation management system (TMS), UPS typically receives all package-level details automatically. That includes the name, address, weight and dimensions. But if this data isn't transmitted in time (due to a manual label or third-party tool), you may be charged a Missing PLD Fee.

Chargeback Fee

If a shipment is billed to a third party or consignee and they don't pay, UPS not only charges the original shipping amount back to the shipper but also adds a refusal fee on top.

Package Tracking, Tracing and Refund Requests

Making too many tracking or refund requests? UPS may charge a fee per request if your activity is considered excessive. If you're unsure where you stand, reach out to UPS or your 3PL to get clarity and avoid unnecessary UPS surcharges.

Declared Value for Carriage

Want to declare a value above the standard liability (usually $100)? UPS offers this service for an added fee. If your package is lost or damaged in transit, you can be reimbursed up to the declared value. Just a note: declared value is not insurance. It only applies to loss or damage during UPS shipping, not post-delivery theft or other issues. For broader coverage, consider purchasing shipping insurance separately.

Payment-Related Fees and Surcharges

UPS gives shippers several ways to pay for UPS shipping outside of a traditional account. These flexible options can be helpful in certain scenarios, but they often come with extra UPS fees. Understanding when and why these charges apply can help you decide if the convenience is worth the cost.

Credit Card Surcharge

If you pay UPS shipping fees with a credit card, expect an additional charge based on the total shipment cost. You can sidestep this parcel fee by paying through a bank account, such as using ACH.

Third Party Billing Service

Want to bill the shipping charges to someone else? When you choose to bill a third party, UPS applies a service fee, calculated as a percentage of the full shipping cost, to that third party.

Rebill Fee

If you need to change which UPS account is billed after the shipment has already been processed, UPS will honor the request but apply a rebill fee each time it's done.

Shipping Charge Correction Audit Fee

Providing inaccurate shipment details — such as incorrect weight, dimensions or destination — may result in an adjustment to your original UPS shipping charges. To offset the cost of auditing and correcting this information, UPS applies a Shipping Charge Correction Audit Fee when your account's weekly corrections exceed a threshold. The charge is either $1 per package with a correction or 6% of the total amount of shipping charge corrections for that invoice period, whichever is greater.

Collect on Delivery (COD)

If your shipment requires payment from the recipient at the time of delivery, you can use a COD service. UPS, through UPS Capital®, will collect the payment and complete the delivery, but this option includes a fee for the shipper. Be sure to contact UPS Capital in advance to set up COD properly.

Returns-Related Fees and Charges

Returns — also called reverse logistics — are a standard part of doing business, especially in parcel shipping. UPS offers a range of return options to simplify the process for both you and your customers, but many of these services include added UPS fees or parcel fees depending on how the return is handled.

Print Return Label

With this option, you generate a return label and send it to your customer. You can include it in the original package or make it available digitally, such as through a return portal on your website. Either way, a small UPS fee applies for each label you create, plus the cost of the return shipment itself.

Electronic Return Label

Instead of printing and sending the return label yourself, UPS can email a label and mobile barcode directly to your customer. They can either print the label at home or bring the barcode to a UPS Store® to have it printed on-site. This method carries the same UPS shipping fee as the print version, so it comes down to which format works best for your workflow.

3 UPS Pickup Attempts Label

For higher-value or time-sensitive returns, this premium service can be useful. UPS prints a return label and sends a driver to make up to three pickup attempts at the recipient's location. This option increases the chance of a successful return and is ideal when the customer prefers a pickup instead of dropping off the package. Because of the added service, this option comes with a UPS surcharge.

UPS® Pickup Point Placard Zero Volume Fee

The UPS® Pickup Point Placard Zero Volume Fee is a special surcharge applied when a pickup is scheduled but no packages are tendered to the driver. This is specifically for businesses using a UPS Pickup Point Placard, which is a return solution commonly used in healthcare and pharmaceutical industries.

Surcharge Based on Fuel Prices

Unlike many other UPS surcharges, fuel-related charges fluctuate frequently because they're tied directly to market fuel costs. When diesel or jet fuel prices rise, carriers like UPS adjust their fuel surcharges to help offset the impact on operating costs.

If you have a UPS account, fuel surcharges will appear on your weekly invoice. Occasional shippers who don't receive regular billing will still see these UPS fees included in their standard UPS shipping charges.

U.S. Ground Domestic and UPS Ground Saver Fuel Surcharge

Fuel surcharges for ground shipments, including UPS Ground Saver, are based on the National U.S. Average On-Highway Diesel Fuel Price, as reported by the U.S. Energy Information Administration (EIA). These rates change as fuel prices shift.

Domestic Air Fuel Surcharge

For air shipments, UPS uses the U.S. Gulf Coast price for kerosene-type jet fuel — also published by the U.S. EIA — to calculate fuel surcharges. These rates are determined using an index-based formula and are updated every Monday to reflect current market conditions.

Charges Related to Weekends, Holidays and High-Demand Times

Shipping outside of standard business days or during periods of high demand can result in additional UPS fees. Whether you're requesting a Saturday delivery or shipping during the holiday season, these charges help UPS manage added labor, transportation and capacity costs.

Saturday Delivery

For an extra UPS shipping fee, UPS offers Saturday delivery in select areas. The charge is applied per package and can vary based on the service level and destination. Availability depends on the delivery location and whether the requested service supports Saturday delivery.

Saturday Stop Charge

This UPS surcharge applies when a UPS driver is required to make a pickup or delivery stop on a Saturday. It's charged per stop — not per package — and helps cover the additional costs of weekend operations such as labor and route adjustments.

Saturday Air Processing Fee

If your UPS air shipment is picked up on a Saturday, it will still be delivered on the next business day, but you'll be assessed an extra fee for Saturday processing.

Peak and/or Demand Surcharges

While often used interchangeably, Peak Surcharges generally refer to fees applied from late November through January, when parcel shipping demand spikes due to the holidays. Demand Surcharges can occur at any time of year when UPS sees a surge in shipping volume, either domestically or internationally. These fees may also apply to certain global lanes facing volume or capacity issues.

Surge Fees

Surge Fees are temporary UPS surcharges applied in response to unexpected market shifts, like unforecasted shipping volume spikes. These rates may change throughout the year, so it's important to review the current UPS rate guide before shipping. While more common with international shipments, UPS may implement domestic surge fees under certain conditions.

International Parcel Shipping Fees and Surcharges

Shipping internationally, whether importing or exporting, carries its own set of possible fees and surcharges. Some of them mirror or are similar to domestic charges, while others are specific to the additional complexities of global shipping.

Undeliverable Shipment Surcharge

If UPS is unable to complete an international delivery after making a reasonable attempt, an Undeliverable Shipment Surcharge will apply. This charge is added on top of the original shipping fees and the cost to return the package to the sender. It helps cover the additional handling required when a package can't reach its intended destination.

Duty and Tax Forwarding

This charge applies if the duties and/or taxes are billed outside the destination country.

Currency Conversion Rate

The UPS Currency Conversion Rate is the exchange rate UPS uses when converting shipping charges from one currency to another — typically when a shipment is billed in a foreign currency but needs to be paid in the payer's local currency.

Certificate of Origin

For a fee, UPS can prepare this required document on behalf of the shipper for exported goods manufactured and originating within the U.S.

Electronic Export Information (EEI)

UPS can file an EEI document on your behalf for a fee. Providing all required data — as part of processing a shipment online or via a TMS — ensures that UPS will be able to file it accurately and on time. To avoid this fee, you can file EEI free of charge at cbp.gov/ace, a U.S. government website.

Paper Commercial Invoice Services Surcharge

To encourage electronic document submittal and cover the extra work needed to process a paper document, UPS will charge this fee if you don't provide the commercial invoice in a digital form for an international shipment.

International Fuel Surcharges

Similar to domestic fuel surcharges, UPS uses an index-based formula for determining these charges and updates them every Monday. Here's a glance:

Saturday Export Processing Fee

Similar to the Saturday Air Processing Fee, this charge is to ensure that international packages picked up on Saturday will clear customs one day earlier than if they were picked up Monday.

Prohibited Items Fees

To discourage shipping of prohibited items, UPS will charge punitive fees if restricted or illegal contents are discovered in their system.

Prohibited Item Fee

Packages containing prohibited articles or restricted articles (as determined by UPS policies and procedures plus applicable laws and regulations) are subject to additional charges. UPS reserves the right to dispose of the package, turn it over to the authorities or return it to the origin at the shipper's risk and expense.

Unlawful Drug Fee

UPS will charge a much higher fee for illegal drugs found in its system compared to other prohibited items, and reserves the right to notify governmental authorities, dispose of the package at the shipper's expense and terminate all service to the shipper.

Recipient Services Fees

UPS offers recipients several ways to personalize their delivery experience. Some services are free, while others come with additional UPS fees. These options help make small package shipping more flexible for end customers.

Delivery Change Request

If a recipient misses the first delivery attempt or receives an alert about an upcoming delivery, they can submit a delivery change through their UPS tracking link or email notification. This allows them to adjust the delivery to better fit their schedule or preferences.

  • No-charge options: Recipients can request that UPS leave the package in a specific location, such as with a neighbor within walking distance, return it to the sender, or redeliver it to the original address if it was taken to a UPS Access Point Location without their request.
  • Fee-based options: For more advanced changes, such as rescheduling to a different day, changing the delivery address, or requesting delivery to a UPS Access Point Location, a parcel fee will apply. Charges are the same whether the request is made online or by phone.

UPS My Choice® and UPS My Choice® for Business

This platform allows both residential and business recipients to manage deliveries via desktop or mobile app, offering a mix of free tools and premium services.

  • No-charge options: Recipients can leave instructions for where to leave a package, return it to sender, redeliver to the original address if it was rerouted, or place a vacation hold to keep parcels at a UPS Access Point Location until pickup.
  • Fee-based options: Paid features include rescheduling to a future date, changing delivery location, upgrading UPS Ground Saver to UPS Ground, requesting delivery after a vacation hold, or selecting a specific two-hour delivery window. These UPS surcharges are billed to the recipient.

Carbon Offset Fee

This optional UPS fee is available through UPS automated shipping systems and is designed for businesses that want to reduce the environmental impact of their parcel shipping. UPS calculates the carbon emissions associated with transporting your package and purchases carbon offsets to balance that impact.

When you select this service, your shipping label will display a carbon neutral indicator, and you can opt to have the recipient automatically receive a branded UPS carbon neutral email.

Ship Your Small Packages With Less Stress

Now that you are equipped with knowledge about fees and charges that can affect your delivery's final price, you'll be able to avoid unnecessary charges and plan for the inevitable ones. To help ensure your business shipping goes off without a hitch, Unishippers offers useful shipping resources, tips to reduce costs and ship more efficiently and guidance on ways to save on your parcel shipping.

Curious about the charges you're most likely to encounter? Our handy e-guide outlines the most common UPS small package fees that impact businesses like yours.

Download Our Common UPS Small Package Fees E-guide Now

Take the next step! Save money with help from a 3PL like Unishippers

With everything else on your plate, it's challenging to focus on all the intricacies of parcel shipping and the costs that go along with it. As part of the largest non-retail UPS Authorized Reseller in the nation, Unishippers has the expertise and resources to help shippers get the details right. And with access to our powerful myUnishippers TMS, you can always get a quote and view your shipment's fees and surcharges on your invoices at any time.

We can also help you take a higher-level look at your shipping operations and develop a detailed shipping strategy that can boost efficiency and identify significant savings.

If you're working toward keeping cost low and avoiding unnecessary shipping charges, request a consultation with Unishippers today!

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Publish Date: 08/19/2025