New Ups Oversized Package Charges and Fedex Handling Fee Regulations
In August 2025, the international logistics industry will see two major policy adjustments: the new UPS Oversized Package Surcharge (LPS) will take effect on August 17, and FedEx will simultaneously update its US-bound handling fee and dimensional weight calculation rules on August 18. The combined policies of these two giants will directly increase logistics costs for large and lightweight goods in cross-border e-commerce. This article will provide an in-depth analysis of the new regulations and offer strategies to help businesses reduce costs and increase efficiency.
Table of Contents
New UPS Oversized Package Charges: Cubic Volume Becomes the Core Standard
Effective Date: August 17, 2025
Core Change: Billing Model Transformation
Abolition of the "length + girth" model and the adoption of a dual standard of cubic volume (length × width × height) and weight. Conditions triggering the Large Package Surcharge (LPS): Domestic parcels with a cubic size greater than 17,280 cubic inches (approximately 0.28 m³) or a weight greater than 110 pounds (approximately 49.9 kg).
The Additional Handling Surcharge (AHS) threshold: parcels with a volume greater than 640 cubic inches (approximately 0.14 m³) will be charged, a reduction of nearly 60% from the previous standard.
This means that more medium-sized parcels will be classified as "requiring additional handling," triggering surcharges, particularly affecting large items such as furniture, household goods, and sporting equipment.
Recommendations: Optimize packaging dimensions to reduce unnecessary bulk, or choose Chinadivision's logistics fulfillment services to reduce chargeable weight through professional warehousing and packaging solutions.
FedEx New Regulations: Inbound Handling Fees Increase by 67%
Effective Date: August 18, 2025
Core Change: Inbound Handling Fee Increase
The 67% increase: From $1.50 per shipment to $2.50 per shipment, applicable to all FedEx shipments entering the United States, calculated per shipment or per package. Volumetric Weight Calculation "Round Up"
Old Rule: Dimensions with decimals less than 0.5 inches are rounded down (e.g., 10.1 inches → 10 inches).
New Rule: All dimensions with decimals less than 1 inch are rounded up (e.g., 10.1 inches → 11 inches).
Volume Amplification Effect: Triggering higher billing tiers or even oversized surcharges.
Impact Analysis:
Sellers of lightweight goods such as clothing, home goods, and plush toys are experiencing soaring costs, making packaging optimization a necessity. Items with multiple sizes must be recalculated to avoid unexpected shipping costs due to calculation rule changes.
Suggestions: Optimize packaging design to reduce unused space. Adopt ChinaDivision's intelligent warehousing and logistics solutions to reduce volumetric weight through professional sorting and packaging.
How does ChinaDivision break the cost dilemma?
Faced with the new regulations from UPS and FedEx, cross-border e-commerce sellers need to optimize packaging, adjust transportation methods, and optimize their warehouse layout. ChinaDivision's global supply chain services are a key partner for reducing costs and increasing efficiency. 1. Smart Packaging Optimization: Reduce Volume and Weight, Avoid Surcharges
Customized Packaging Design: Custom molds are created based on product shape and size to minimize wasted space. For example, removable, flat packaging can be designed for irregular furniture, reducing volume by over 30%.
Lightweight Material Application: Eco-friendly materials such as foam substitutes and air bags are used to reduce packaging weight and avoid "heavy freight surcharges."
Compliance Assurance: Ensure packaging meets UPS and FedEx standards to avoid additional handling fees due to packaging issues.
- Pre-stocking Overseas Warehouses: Avoid High Direct Shipping Costs
Global Warehousing Network: We have overseas warehouses in over 200 countries and regions, including the US, Canada, the UK, and Southeast Asia, supporting localized delivery.
Intermodal Transport Solutions: For large items, we offer combined shipping methods such as ocean freight + trucking, rail + express delivery, reducing costs by over 50% compared to direct air freight.
Dynamic Inventory Management: Intelligent systems predict demand to avoid inventory overhangs and out-of-stock situations, reducing the high costs of emergency restocking.
- Diversified Logistics Channels: Flexible Respond to Policy Changes
Partner Network Coverage: Deeply collaborate with over 100 logistics providers, including DHL and USPS, to provide multi-channel price comparisons and intelligent recommendations.
Dedicated Line Services: Customized dedicated lines are available for popular markets, eliminating surcharges in remote areas.
Compliance Support: A dedicated team handles customs declaration and clearance, mitigating tariff risks associated with documentation issues.
New regulations from UPS and FedEx are imminent, and proactive planning is crucial for a smooth transition. These new regulations make it more important than ever for B2B companies and e-commerce sellers to optimize their logistics and transportation fulfillment services. Chinadivision is committed to providing global sellers with efficient, transparent, and controllable logistics and fulfillment services, helping you navigate the complex international shipping landscape.
Don't let these new regulations negatively impact your profits. Contact a Chinadivision logistics and transportation fulfillment provider today and take control of your logistics. Leveraging our expertise and services, you can adapt to these changes, reduce transportation and logistics costs, and provide your customers with seamless fulfillment services.
About the Author: Limi
Limi is a content marketing expert at ChinaDivision, helping businesses and e-commerce sellers navigate the complexities of international shipping by providing actionable tips and comprehensive guides on logistics, shipping, and cargo transportation.