Since the 1st^er In January 2026, the major carriers raised their base rates by an average of 5.9% (%). UPS kicked things off on December 22, 2025, followed by FedEx on January 5, 2026, and DHL on January 1^er January. Purolator, which had already raised its rates by 5.7% in Q3 on 1^er September 2025, is now on par with its competitors.

For a Canadian small or medium-sized business that ships regularly, this reported 5.9 % often masks an actual increase of 8 to 12 % once the new dimensional parameters and surcharges are factored in. The good news: with a clear strategy, it is still possible to offset a large portion of these increases.

In this guide, we break down the 2026 rate increases carrier by carrier, explain the less obvious changes that are really driving up costs, and offer practical strategies for Canadian shippers.

2026 Price Increases: A Comparison of Carriers

Here is a summary of the General Rate Increases (GRI) announced for the Canadian market:

These average increases are calculated based on all rate schedules. In certain segments—residential packages, international shipments, and oversized packages—the increase sometimes exceeds 10%.

DHL: «Demand» surcharge suspended

DHL has partially offset its GRI by suspending its Demand Surcharge effective February 17, 2026. This is good news for international express shipments, but the impact on current volumes remains minimal.

FedEx: New Canada–U.S. Customs Fees

In 2026, FedEx introduced new customs clearance fees (Clearance of Entry Fees) on shipments from Canada to the United States. When combined with the GRI, they can increase the total landed cost of a cross-border shipment to 9 % to 11 % more than in 2025.

The 5.9 % Trap: Hidden Rises

The figure shown tells only part of the story. Three operational changes make the actual bill much higher.

1. New size threshold and surcharges

UPS and FedEx have tightened the dimensional and volume criteria that trigger surcharges Additional Handling and Large Package. Many packages that fell under the radar in 2025 will automatically be moved to the higher rate bracket in 2026.

2. Rounding of the volumetric weight

Since August 2025, FedEx and UPS have been rounding up every fraction of an inch to the next whole inch before to apply the volumetric weight formula. A package measuring 11.9 inches is now billed as if it were 12 inches. With high monthly volumes, the impact is far from negligible.

Note: For most international services, the DIM divisor is 139, except for shipments to Canada (UPS Standard), where it remains 166. A package measuring 30 × 40 × 50 cm and weighing 4 kg will therefore be billed as a 12-kg package.

3. Peak-season surcharges

From late October through mid-January, DHL Express, Purolator, and Canada Post apply peak season surcharges. Between October 27, 2025, and January 18, 2026, for example, packages requiring special handling (oversized, heavy residential) were subject to a surcharge of CA$6.1 per piece. The 2026–2027 period will feature similar rates starting October 12, 2026.

Canada Post: The Situation After the Strike

After more than a year of conflict, Canada Post and the CUPW reached tentative agreements in early 2026. Union members voted on the proposed contracts from April 20 to May 30, 2026. Canadian small and medium-sized businesses are not out of the woods yet, however: the 2024 strike cost approximately $1 billion in losses during the peak season, and merchant confidence remains fragile.

The lesson: Don't rely on a single carrier, even for low-cost domestic shipments.

Five practical ways to lower your 2026 bill

1. Adopt a multi-carrier strategy

Comparing real-time rates across three or four carriers and routing each package based on its dimensions, weight, and destination can reduce the average cost per shipment by 15 to 25 percent. This is the approach most Canadian e-commerce SMEs now prefer.

2. Review your packaging

With the new rounding and volumetric weight rules, oversized packaging costs 30 to 50% more than properly sized packaging. An annual audit of the boxes used—and replacing standard cartons with more suitable sizes—quickly pays for itself.

3. Negotiate rates and secure volume discounts

The GRI applies to listed prices. With a shipping partner that negotiates master agreements, you gain access to preferential rates and volume-based discounts, often well below walk-in rates.

4. Anticipate peaks and batch your mailings

During peak periods, consolidating shipments and offering a discounted, slower delivery option can appeal to your customers while helping you avoid penalties peak. Clearly communicating deadlines to your customers remains the best way to prevent dissatisfaction.

5. Monitor additional loads

Fuel, additional handling, residential delivery, remote areas: these ancillary costs can sometimes account for 30% to 40% of the final price. Monitoring invoices on a monthly basis allows you to quickly identify discrepancies and areas for optimization.

Preparing for the 2026 peak season

The period from October to January is the time of year when every mistake costs the most. Three priorities for the end of 2026:

• Agree on delivery deadlines with your customers and publish your submission deadlines by November 15.
• Arrange for an alternative carrier for each service used, in the event of overcrowding or a labor dispute.
• Estimate your costs with the new built-in surcharges, and adjust your free shipping thresholds accordingly.

Conclusion: Turning the Upturn into an Opportunity

The 2026 rate hikes are not inevitable. Canadian SMEs that adopt a multi-carrier approach, optimize their packaging, and partner with an expert shipping provider can offset—or even exceed—the impact of the GRI.

At Shipping Store, we help Canadian businesses compare rates from major carriers in real time, access negotiated rates, and automate their domestic and international shipments. To find out how much your small business can save today, visit expertshipping.ca and get a personalized quote in just a few minutes.