Starting January 11th, 2026, the Annual General Rate Increases for both FedEx and UPS are now active. These higher rates are shown on your latest invoices. Just because the average increase is 5.9%, don’t be fooled, these increases are specifically created to have the greatest impact on the most critical shipping services, often driving cost increases much greater than the 5.9% Average. What is your impact?
The carriers continue to add new surcharges and fees, shown here with a new FedEx announcement of Additional Handling Charges (AHC), now effective January 11th. The bigger shift is structural: pricing power has moved away from a single annual GRI and toward constant, data-driven adjustments. Shippers that only review rates once a year will feel it; those actively managing service mix, accessorial exposure, and carrier diversification will be far better positioned in 2026.
Let us examine the FedEx AHS changes that took effect on January 12th, 2026.
What should shippers be doing — now
- Quantify the impact immediately
If you don’t have clean data, time, or the expertise, bring in AFMS to uncover your exposure.
- Fix dimensional discipline
Let AFMS review package dimensions and your organization’s strategy now. This isn’t a quick fix, but it will be critical to protect margins.
3. Let AFMS assist in restructuring your FedEx agreement
You won’t win by arguing a single surcharge in isolation, but AFMS can help you negotiate better contract terms:
- Oversize / Large Package surcharge offsets
- Cubic threshold exceptions
- Custom surcharge language tied to % of spend impact
- Deferred effective dates on surcharge changes
Bottom line:
FedEx AHS and Oversize criteria changed January 12.
The financial impact can be significant.
