Why Are Shipping Costs Higher in December?
See which December carrier fees add to gift shipping and how timing, box size, and speed can lower the total.
Shipping costs are higher in December because carriers add temporary peak-season fees to handle holiday volume. Those fees sit on top of higher 2026 base rates and fuel surcharges. A demand surcharge is a temporary per-package fee during high-volume weeks.
Retailers often pass part of it to shoppers through shipping charges or higher prices.
Verification note: Program terms and availability can change. This page was checked against linked sources on November 03, 2026.
What do UPS and FedEx add for the holidays?
According to UPS, its highest holiday demand surcharges run Nov. 22–Dec. 26, 2026, including about $0.75 per residential Ground package plus $11.90 additional-handling and $117.50 large-package fees UPS 2026 demand-surcharge schedule.
Those amounts apply to shipments moving through its network, including many retail orders. According to FedEx, its highest demand surcharges run Nov. 23–Dec.
27, 2026, including about $0.80 per residential Ground package plus higher additional-handling and oversize fees FedEx demand-surcharge update. Residential deliveries cost more because they take extra stops and time. Oversize and hard-to-handle packages face the largest add-ons.
A gift in a very large box can trigger a fee many times the base postage.
Why does USPS cost more too?
The U.S. Postal Service imposed temporary holiday rates Oct. 4, 2026–Jan.
17, 2027 on Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select USPS holiday price announcement. The average increase is about 6%, with some heavy long-distance Express parcels up about $20.80 at retail. The Postal Service says the temporary prices cover extra handling from heightened holiday mail and package volume.
The prices remain through midnight Central Jan. 17, 2027. That means early December mailers still pay holiday rates.
January gift returns shipped by Priority Mail or Ground Advantage can also cost more.
Why is December 2026 especially expensive?
Diesel-driven fuel surcharges add another layer. Reporting by Reuters notes that at a $6.28 per gallon average diesel price on Oct. 19, UPS applied 29.5% and FedEx applied 29% Reuters report on holiday delivery surcharges.
Fuel fees change weekly, so the December amount depends on diesel prices. Volume adds pressure. Parcel carriers face about double normal daily volume in the fourth quarter.
Ground rates were forecast 5.8% above the prior fourth quarter and express 13.8% higher. Holiday parcel demand was projected at about 2.4 billion packages, up 4% from last year. That growth follows 5.9% general rate increases at UPS and FedEx, so peak fees land on an already higher base.
How can you lower a December shipment?
Fees vary by service, weight, zone, residential status and shipper volume. Small senders have the most control over box size, timing and service choice. Measure the box before buying postage.
Reducing one dimension can avoid an oversize threshold and save far more than the postage difference.INTRODUCTION: Shipping costs are higher in December because carriers add temporary peak-season fees to handle holiday volume. Those fees sit on top of higher 2026 base rates and fuel surcharges. A demand surcharge is a temporary per-package fee during high-volume weeks.
Retailers often pass part of it to shoppers through shipping charges or higher prices.
- Ship before the highest surcharge weeks when possible
- Use the smallest sturdy box that fits the gift
- Choose a slower service for non-urgent gifts
- Send to a workplace or commercial address when the recipient allows it
- Combine items into one shipment instead of several small boxes
What do UPS and FedEx add for the holidays?
According to UPS, its highest holiday demand surcharges run Nov. 22–Dec. 26, 2026, including about $0.75 per residential Ground package plus $11.90 additional-handling and $117.50 large-package fees UPS 2026 demand-surcharge schedule.
Those amounts apply to shipments moving through its network, including many retail orders. According to FedEx, its highest demand surcharges run Nov. 23–Dec.
27, 2026, including about $0.80 per residential Ground package plus higher additional-handling and oversize fees FedEx demand-surcharge update. Residential deliveries cost more because they take extra stops and time. Oversize and hard-to-handle packages face the largest add-ons.
A gift in a very large box can trigger a fee many times the base postage.
Why does USPS cost more too?
The U.S. Postal Service imposed temporary holiday rates Oct. 4, 2026–Jan.
17, 2027 on Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select USPS holiday price announcement. The average increase is about 6%, with some heavy long-distance Express parcels up about $20.80 at retail. The Postal Service says the temporary prices cover extra handling from heightened holiday mail and package volume.
The prices remain through midnight Central Jan. 17, 2027. That means early December mailers still pay holiday rates.
January gift returns shipped by Priority Mail or Ground Advantage can also cost more.
Why is December 2026 especially expensive?
Diesel-driven fuel surcharges add another layer. Reporting by Reuters notes that at a $6.28 per gallon average diesel price on Oct. 19, UPS applied 29.5% and FedEx applied 29% Reuters report on holiday delivery surcharges.
Fuel fees change weekly, so the December amount depends on diesel prices. Volume adds pressure. Parcel carriers face about double normal daily volume in the fourth quarter.
Ground rates were forecast 5.8% above the prior fourth quarter and express 13.8% higher. Holiday parcel demand was projected at about 2.4 billion packages, up 4% from last year. That growth follows 5.9% general rate increases at UPS and FedEx, so peak fees land on an already higher base.
How can you lower a December shipment?
Fees vary by service, weight, zone, residential status and shipper volume. Small senders have the most control over box size, timing and service choice. Measure the box before buying postage.
Reducing one dimension can avoid an oversize threshold and save far more than the postage difference.
- Ship before the highest surcharge weeks when possible
- Use the smallest sturdy box that fits the gift
- Choose a slower service for non-urgent gifts
- Send to a workplace or commercial address when the recipient allows it
- Combine items into one shipment instead of several small boxes