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Attention Shippers: UPS Fee Increases Are Coming this March – Are You Prepared?
Everything You Need to Know About UPS’s 2025 Fee Updates
UPS recently announced new surcharges and fees in 2025, with changes affecting fuel surcharges, invoicing, and payment processes. Below is a clear, detailed rundown of what’s coming, when it starts, and how LJM Group can assist shippers in navigating effectively and minimizing the impact.
What’s Changing and When?
Fuel Surcharge Adjustments
- Effective Date: March 10, 2025
- Details: UPS will adjust fuel surcharges for U.S. Ground Domestic, UPS SurePost, and U.S. Domestic Air services. For Domestic Ground, SurePost and Domestic Air the increase is 50 basis points (0.50%) More details can be found here. Keep in mind, these surcharges are tied to fluctuating fuel prices and can significantly bump up your shipping costs.
- Why It Matters: Fuel surcharges are applied to every package shipped.
- LJM Group Solution: LJM Group specializes in logistics optimization. Our experts can analyze your shipping patterns, forecast surcharge impacts, and recommend cost-saving adjustments – like consolidating shipments or negotiating better rates – before it’s too late.
*NEW* Paper Commercial Invoice Services Surcharge:
- Effective Date: March 17, 2025
- Details: A $10.00 fee per shipment will be applied to the shipper when the commercial invoice is not provided by the shipper in digital form using UPS’ Paperless Invoice services prior to the processing of the commercial invoice by UPS.
- Why It Matters: If you aren’t paying attention, these fees per shipment can add up quickly.
- LJM Group Solution: LJM Group can help transition your invoices to paperless and electronic payment systems. Our team handles the setup, ensuring you avoid the $10 fee while keeping your records organized and accessible.
Print Invoice Fee
- Effective Date: March 31, 2025
- Details: A new $5.00 fee will apply to every printed invoice copy sent to shippers or payers.
- Why It Matters: Paper invoices could quietly inflate costs, especially for businesses with frequent shipments.
- LJM Group Solution: LJM Group can streamline your invoicing by transitioning you to electronic systems. Our team handles the setup, ensuring you avoid the $5 fee while keeping your records organized and accessible.
Payment Fee Updates
- Effective Date: March 31, 2025
- Details:
- Payments by check or wire transfer will incur a $25.00 fee per transaction (ACH payments are exempt.)
- Late payment fees will increase from 8% to 9.9% of the past-due balance, including prior late fees.
- Why It Matters: These fees penalize traditional payment methods and late payers, disrupting cash flow if not addressed.
- LJM Group Solution: LJM Group can overhaul your payment process, setting up ACH to eliminate the $25 fee. We also offer push notification emails any time a late payment fee is assessed, along with ongoing invoice audits to help you stay on track and avoid the steep 9.9% late penalty.
Payment Processing Fee
- Effective Date: May 19, 2025
- Details:
- A new 2% fee will apply to most invoice charges (not just shipping costs) on each invoice
- The credit card surcharge will no longer apply.
- Why It Matters: The 2% fee adds a layer of cost across your bill.
- LJM Group Solution: LJM Group’s financial experts can help you find the cheapest, most efficient payment method, factoring in the 2% fee and your business’s unique profile.
Minimize The UPS Fee Increase Impact With LJM Group
Go Digital with Ease
LJM Group takes the hassle out of switching to e-invoices and ACH payments. We manage the transition, saving you from the $5 invoice fee and $25 payment fee while improving efficiency.
Stay Informed
Fuel surcharges can be unpredictable—LJM Group monitors UPS.com updates for you, providing real-time insights and proactive budget adjustments.
Avoid Late Fees
With LJM Group’s ongoing invoice auditing and billing support, you’ll be better equipped to stay on track and avoid steep penalties.
Optimize Costs
Whether it’s negotiating UPS contracts, analyzing payment options, or reducing shipping frequency, LJM Group’s tailored strategies keep your expenses in check. We’ll weigh the 2% processing fee against credit card benefits to find your sweet spot.
Strategic Planning
LJM Group doesn’t just react – we plan. Our logistics experts assess your shipping volume, payment habits and goals, crafting a custom roadmap to tackle these changes before they hit.
The Bigger Picture: Navigating a Shifting Shipping Landscape
The UPS fee changes in 2025 come at a time when the parcel delivery market is facing unique challenges. Both UPS and FedEx are working to increase their per-package revenues by introducing added fees, while attempting to maintain competitive edge by offering discounted base rates. This dynamic is further complicated by soft demand, which has kept the market highly competitive.
In a recent Supply Chain Dive article by journalist Max Garland, Kenneth Moyer, VP of Supply Chain Strategies at LJM Group weighed in on these recent developments. In the article, Moyer explained that UPS’s decision to raise certain payment fees, rather than increasing shipping rates, reflects a broader trend in the shipping industry: shippers often overlook these ancillary fees. As Moyer Pointed out:
“One reason UPS may have earmarked these payment fees for increase versus shipping rates is the blind-spot they generally inhabit for most shippers when comparing carriers. Shippers understandably tend to focus primarily on shipping charges and generally don’t give these ancillary fees the attention they may merit.”
– Kenneth Moyer, VP of Supply Chain Strategies at LJM Group
This is a critical insight for shippers who might not realize that these seemingly minor charges can add up and significantly affect their overall shipping costs. Moyer also expressed concerns that FedEx could soon follow suit, noting that:
“Because UPS announced these changes first, it gives FedEx the political cover they need to be able to match it while citing UPS as the impetus for the change.”
-Kenneth Moyer
The reality is that the landscape is shifting, and carriers like UPS are finding new ways to increase revenue while shippers are focusing on traditional shipping rates. The key takeaway? Shippers need to take a holistic approach to managing their logistics costs and start paying closer attention to these additional fees.
To read the full article by Max Garland and learn more about the latest UPS fee changes, click here.
At LJM Group, we understand the intricacies of these changes and are here to help businesses navigate the shifting landscape with tailored solutions that minimize costs and maximize efficiency. By partnering with LJM Group, you’ll not only sidestep unnecessary fees but also optimize your entire shipping operation. Contact LJM Group today to stay ahead and visit UPS.com for the latest details as they emerge. With the right support, 2025 can be a year of savings, not surprises.
We Negotiate, You Save.
Explore More Expert Insights from LJM Group
LJM Group is the premier partner for businesses seeking to control parcel shipping costs. As industry-leading experts in parcel invoice auditing, contract negotiation, and shipping optimization, we provide tailored, high-touch, concierge-level solutions that help businesses reduce shipping expenses, improve efficiency, and maximize profitability – all while ensuring transparency and fairness in carrier agreements.
With decades of experience and deep carrier expertise, we empower shippers to secure the most favorable rates, uncover hidden savings, and enhance their shipping strategies without disrupting their business.
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