Here's Why Holiday Shipping Rates Are Rising

It’s time again for the holiday season. For eCommerce merchants, this means it’s the busiest time of the year. An estimated 850 to 950 million packages will be delivered during the holidays, and shipping rates are only going up.

While it’s supposed to be a holly jolly holiday season, USPS, FedEx, UPS, and other major courier companies are implementing temporary shipping increases for the holiday season. Plus, holiday shipping delays are expected with the influx of shipments. So, how can eCommerce merchants prepare for additional holiday shipping surcharges?

In this blog, we’ll go over why shipping is so expensive during the holiday season. That way, you know exactly how to prepare your eCommerce business for peak season shipping so customers can have a jolly holiday shopping season.

Why is Shipping So Expensive?

There’s no one-size-fits-all cost to shipping packages. The final shipping cost of your parcel depends on factors such as:

• Package weight
• Package dimensions
• Shipping distance
• Shipping speed

In this section, we’ll go over common reasons why holiday shipping is expensive, so eCommerce merchants like yourself can prepare for the holiday shipping season like a well-seasoned pro.

Reasons Why Shipping is So Expensive

Have you noticed that holiday shipping increased this peak season, and you’re not sure why? You can thank  Covid-19, the supply chain crisis, and the surge of holiday shipments for the increased shipping rates.

We’ll go more into detail so you can get a better idea of why holiday shipping is more expensive this peak season.

The surge of holiday shipments

Major courier companies like UPS, FedEx, and USPS are experiencing an increase in shipments during this holiday season. Having said that, courier companies need to better prepare for the surge of shipments by hiring seasonal, temporary workers.

USPS is hiring more than 40,000 seasonal workers in preparation for the holiday season. Similarly, UPS is hiring 100,000 seasonal workers to curb the influx of shipments. So if you're looking to receive your package by Christmas, customers may want to shop early to avoid any further delays.

Global supply chain crisis

Supply chain issues have been disrupting the global market. The global average price to ship a 40-foot container has more than quadrupled in the last year since Covid-19. For instance, a full container from Asia to the US costs nearly $20,000 一 with prices still rising.

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The Impact of 2025 Trade Wars on Holiday Shipping Costs

In 2025, global trade tensions have intensified, leading to renewed trade wars between major economies. This escalation has added another layer of cost and complexity to international shipping — just in time for the holiday season.

Why Trade Wars Are Driving Up Shipping Prices

• Tariff hikes and new import duties have increased the overall landed cost of goods, including shipping.
• As of Q3 2025, the average import duty from China to the US has risen by 18% across key product categories like electronics, toys, and apparel (Source: World Trade Organization). However, the recent China tariffs could change the trade dynamics, so it’s important to keep an eye out.
• The EU, US, and Asian nations have introduced retaliatory tariffs, further disrupting the global supply chain and increasing cross-border shipping costs for merchants.

Relevance for eCommerce Merchants

• SMBs selling internationally may now see higher customs fees and longer clearance times — particularly when shipping from countries affected by new tariffs (e.g., China, Vietnam, India).
• Higher shipping costs can eat into already thin holiday margins unless businesses adapt pricing, promotions, or fulfillment strategies.

Strategies to Reduce Holiday Shipping Costs in 2025

Shipping costs may be rising, but smart planning and tech-powered solutions can help eCommerce merchants save significantly during the holiday crunch.

1. Use a Multi-Carrier Shipping Platform

• Platforms like Easyship give access to pre-negotiated bulk discounts (up to 91%) on 250+ global couriers including USPS, UPS, and DHL.
• Compare rates in real-time, access smart shipping rules, and optimize for speed or cost per order.

Think of it as using a flight aggregator: you wouldn’t book a $900 ticket without checking other airlines — don’t ship blindly without checking different postal services either.

2. Offer Incentives Strategically, Not Universally

• Free shipping is a great conversion booster, but consider applying it only to high-margin products or cart minimums.
• Alternatively, offer free economy shipping but upsell customers to express at a subsidized rate.

Tactic: Offer “Free shipping on orders over $75” to increase average order value and reduce the % of shipping cost relative to total purchase.

3. Use Regional Fulfillment or Zone Skipping

• Reduce zone-related surcharges by shipping from multiple warehouses or 3PL partners closer to your customer base.
• Zone skipping via freight consolidation hubs (e.g., LA or Dallas) can reduce long-distance parcel rates by up to 35%.

4. Use Ground Services and Plan Ahead

While it takes longer, ground shipping is much more affordable than priority or overnight shipping, regardless of the courier. USPS is more affordable for lightweight parcels, UPS and FedEx have great deals for larger and heavier packages. With ground shipping, you’ll have to plan ahead to ensure that your packages reach in time and there are no holdups.

Here’s a comparison of the ground shipping options from different couriers. For a package weighing 8.8 lbs being shipped from New York to Chicago, these are the indicative rates and features of each courier service:

Shipping Rate Increase from USPS, FedEx, and UPS

If you’re shipping during the holiday season, make sure you account for temporary rate increases from major couriers, so there are no hidden surprises when it comes to shipping.

Additional Surcharges with USPS

USPS is implementing temporary rate increases on USPS services, which will be in effect between Oct. 3 and  Dec. 26. As a result, merchants can expect to pay an extra $0.25 to $5.00 for shipping parcels this holiday season.

This means all your favorite USPS shipping services like Priority Mail Express International, Priority Mail Express Parcel, Express Parcel Select Ground, or even USPS international shipping rates are experiencing temporary rate increases.

Here are the USPS temporary holiday rate increases for 2025, effective from October 5, 2025, through January 18, 2026:

• These increases affect Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select.
• Surcharges vary based on weight and shipping zone.
• The costs are higher for heavier and long-distance (Zones 5–9) shipments, with the highest surcharge for large/heavy packages.

For eCommerce merchants who need further assistance, visit your local post office location to inquire about USPS shipping prices. Alternatively, connect with Easyship's shipping experts to create a shipping strategy fit to your eCommerce needs.

Additional Surcharges with FedEx

Shipping with FedEx this holiday season? Surprise 一  merchants can expect temporary rate increases. To ship with FedEx, you'll pay at least $1.50 extra per package for peak season shipping.

Here are the additional surcharges to expect when shipping during the busiest season:

Additional Surcharges with UPS

UPS is imposing peak season surcharges, but as of 2025, the extra fees are generally flat per-package surcharges (usually between $0.25 and $2.00 per package, depending on service and timing). In summary:

• UPS surcharges for 2025 are flat-rate per package, not per-pound.
• Surcharge amounts and rules may vary for very large packages or special handling, but the per-package model is typical for most shipments.

Related: Shipping Costs Are Rising - Here’s What to Expect

How to Curb Holiday Shipping Delays 2025

You don’t need to search high and low for the cheapest holiday shipping rates. Instead, using a reliable shipping platform can grant eCommerce merchants access to the best available shipping rates, especially for peak season holiday shipping.

Easyship offers up to 70% off discounted shipping rates on 250+ couriers. So instead of paying retail shipping rates for major couriers like USPS, FedEx, and UPS, eCommerce merchants can get high-volume discounts using our Free Shipping Rates Calculator.

Say you want to ship a 5-pound package to the United Kingdom from the US. We’ll use our free shipping rates calculator to figure out how much it costs.

As you can see, you get the cheapest option with FedEx® International Connect Plus at $27 while UPS Worldwide Saver® gives the best value at $ 57.65 with a delivery timeline of 1 working day.

Instead of paying retail rates for shipping, Easyship offers high-volume, exclusive discounts for eCommerce merchants across the globe.

Ready to simplify and save on shipping?
Easyship is here to help.

Easyship was built to simplify shipping for eCommerce sellers of every size. If you’re looking for ways to save on shipping costs, compare rates, automate fulfillment, or grow internationally—our free shipping tools and smart dashboard can save you hours daily.

Holiday Shipping FAQ

Why do shipping rates increase during the holidays?

Couriers like USPS, FedEx, and UPS implement temporary peak season surcharges to handle the higher volume of shipments. This includes added labor costs for seasonal workers, fuel surcharges, and increased operational demand.

When do holiday shipping surcharges typically apply?

Most peak season surcharges are active between early October and mid-January, depending on the courier. For example, USPS surcharges usually run from October 3 to December 26.

How can I save on shipping costs during the holidays?

Use a multi-carrier shipping platform like Easyship to access discounted rates, compare couriers in real time, and apply smart rules. You can also ship early, offer economy shipping options, and consider regional fulfillment to reduce zone-based surcharges.

Are international shipments also affected by holiday rate increases?

Yes. International shipments often face higher tariffs, customs delays, and courier-specific surcharges — especially during trade tensions like the 2025 trade wars. Always check for destination-specific restrictions and fees.

What’s the cheapest way to ship during the holidays?

Ground services (like USPS Ground Advantage or UPS Ground) are often the most affordable, especially for domestic shipments. The key is to plan ahead so you can take advantage of slower, cheaper delivery methods without missing deadlines.

Ready for the holiday shipping season? Sign up for a FREE Easyship account to gain instant access to the best available shipping rates this peak season

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