Comparing shipping carrier rates isn’t easy. Confusing pricing structures, hidden fees, and complex calculations for packaging characteristics make it increasingly difficult for shippers to find the most affordable option.
As a former logistics manager, I’ve spent countless hours shipping packages domestically and across borders. I’m well-versed in the layered challenge of calculating the best shipping rates, and I know how important affordable shipping is for maximizing profitability.
So based on my experience and a ton of research, I put together the following guide to answer the question “Is FedEx or UPS cheaper?”. Granted, multiple variables—such as distance, packaging, and speed—mean the cheapest carrier option for you may not be the cheapest for someone else.
However, armed with rate comparisons across a broad range of shipment options—from lightweight, overnight delivery services to 100-lb international deliveries—you can ascertain which shipper offers the most affordable rates for your specific needs.
TL;DR:
Key takeaways
UPS is cheaper overall for shipping small and lightweight packages.
UPS Next Day Air has cheaper rates for overnight domestic shipping services.
FedEx Ground has cheaper rates for domestic ground shipping services.
FedEx is significantly cheaper for shipping internationally.
What you’ll learn
How FedEx and United Parcel Service (UPS) shipping rates compare for different service levels and packaging characteristics
The most impactful factors that determine shipping costs
How to choose the right shipping carrier option for your specific shipping requirements
Is FedEx or UPS cheaper?
The cheapest carrier option depends on many factors, meaning there is no overall winner between FedEx and UPS. The most affordable carrier will depend on the nature of your shipment—where it’s going, when it needs to get there, and the characteristics of your package.
UPS is cheaper than FedEx for:
Small/lightweight domestic shipments (ground or overnight)
Large/heavy domestic shipments using overnight delivery services
Most domestic overnight delivery services
FedEx is cheaper than UPS for:
Large/heavy domestic shipments using ground services
Most domestic ground shipping services
Shipping internationally
For exact pricing, compare rates using the official UPS Shipping Cost Calculator and the FedEx Shipping Cost Calculator.
Read More: Compare Shipping Companies: FedEx, UPS, and USPS
Comparing UPS and FedEx rates
To make a fair comparison of shipping rates between UPS and FedEx, I’ve calculated the cost of shipping packages of different weights and sizes between San Francisco and Seattle using ground and overnight services.
Small and lightweight package rates
| Weight | Dimensions | UPS Ground | FedEx Ground | UPS Next Day Air | FedEx Priority Overnight |
|---|---|---|---|---|---|
| 1 lb | 3″ x 1″ X 2″ | $14.72 | $18.47 | $97.18 | $108.46 |
| 2 lbs | 3″ X 3″ X 3″ | $15.88 | $18.47 | $105.36 | $116.11 |
| 3 lbs | 4″ X 3″ X 4″ | $16.37 | $18.47 | $118.29 | $132.03 |
| 5 lbs | 6″ X 6″ X 6″ | $18.82 | $18.77 | $130.81 | $145.39 |
CONCLUSION: UPS is cheaper than FedEx for shipping small and lightweight packages using ground or overnight services. The only category where FedEx is cheaper is the 5-lb shipment via FedEx Ground, which beats UPS Ground by $0.05.
Large and heavy package rates
| Weight | Dimensions | UPS Ground | FedEx Ground | UPS Next Day Air | FedEx Priority Overnight |
|---|---|---|---|---|---|
| 10 lbs | 9″ X 9″ X 9″ | $25.66 | $24.71 | $175.82 | $187.26 |
| 20 lbs | 15″ X 5″ X 10″ | $38.52 | $31.92 | $268.56 | $291.69 |
| 50 lbs | 20″ X 10″ X 15″ | $82.91 | $59.83 | $508.10 | $540.09 |
| 100 lbs | 30″ X 20″ X 25″ | $193.46 | $127.46 | $1,054.77 | $1,168.18 |
CONCLUSION: FedEx is cheaper than UPS for shipping large and heavy packages using ground services, but UPS is the more affordable option for overnight shipments.
UPS Ground vs. FedEx Ground shipping service rates
| Weight | Dimensions | UPS Ground | FedEx Ground |
|---|---|---|---|
| 1 lb | 3″ x 1″ X 2″ | $14.72 | $18.47 |
| 5 lbs | 6″ X 6″ X 6″ | $18.82 | $18.77 |
| 10 lbs | 9″ X 9″ X 9″ | $25.66 | $24.71 |
| 50 lbs | 20″ X 10″ X 15″ | $82.91 | $59.83 |
| 100 lbs | 30″ X 20″ X 25″ | $193.46 | $127.46 |
CONCLUSION: FedEx offers cheaper ground service shipping rates than UPS overall, but UPS rates are cheaper for packages that weigh less than 5 lbs.
Priority mail and overnight shipping service rates
| Weight | Dimensions | UPS Next Day Air | FedEx Priority Overnight |
|---|---|---|---|
| 1 lb | 3″ x 1″ X 2″ | $97.18 | $108.46 |
| 5 lbs | 6″ X 6″ X 6″ | $130.81 | $145.39 |
| 10 lbs | 9″ X 9″ X 9″ | $175.82 | $187.26 |
| 50 lbs | 20″ X 10″ X 15″ | $508.10 | $540.09 |
| 100 lbs | 30″ X 20″ X 25″ | $1,054.77 | $1,168.18 |
CONCLUSION: UPS offers cheaper overnight shipping rates than FedEx regardless of packaging characteristics.
Flat rate shipping postal services
| Weight | Dimensions | UPS Ground | FedEx Ground | UPS Next Day Air | FedEx Priority Overnight |
|---|---|---|---|---|---|
| 1 lb | 3″ x 1″ X 2″ | $14.18 | $12.69 | $74.73 | $80.40 |
| 5 lbs | 6″ X 6″ X 6″ | $15.94 | $16.17 | $101.63 | $111.05 |
| 10 lbs | 9″ X 9″ X 9″ | $19.51 | $17.59 | $135.22 | $142.56 |
| 50 lbs | 20″ X 10″ X 15″ | $66.42 | $41.42 | $386.46 | $418.81 |
| 100 lbs | 30″ X 20″ X 25″ | $129.54 | $77.81 | $782.66 | $734.00 |
CONCLUSION: FedEx offers cheaper flat-rate prices for ground shipping services overall, but UPS offers cheaper flat-rate prices for overnight shipping services.
It’s important to note that flat-rate shipping prices frequently change, so it’s best to stay up to date with the latest rates. You can do that by checking the FedEx Standard List Rates and the UPS Rate & Service Guide before you ship.
International shipping rates
To compare international shipping rates, I’ve calculated the cost of shipping packages of varying sizes and weights from San Francisco to Buenos Aires, Argentina.
It’s worth noting that UPS recently announced a new Surge Fee for international shipments between the United States and Canada, effective from May 18, 2025, and remaining in effect until further notice.
| Weight | Dimensions | UPS Worldwide Expedited | FedEx International Economy | UPS Worldwide Saver | FedEx International Priority |
|---|---|---|---|---|---|
| 1 lb | 3″ x 1″ X 2″ | $194.13 | $55.20 | $212.37 | $68.81 |
| 5 lbs | 6″ X 6″ X 6″ | $373.84 | $82.73 | $410.34 | $95.20 |
| 10 lbs | 9″ X 9″ X 9″ | $595.46 | $134.89 | $636.68 | $145.56 |
| 50 lbs | 20″ X 10″ X 15″ | $1,754.27 | $415.99 | $2,004.18 | $464.06 |
| 100 lbs | 30″ X 20″ X 25″ | $2,414.68 | $599.20 | $3,133.86 | $856.30 |
CONCLUSION: FedEx is significantly cheaper than UPS for international shipments. Note that despite the naming conventions, UPS Worldwide Expedited is cheaper than UPS Worldwide Saver.
How to decide between UPS and FedEx
By now it should be clear that there’s no one-size-fits-all answer when it comes to the cheapest carrier option for your package. However, we can infer from our research which option is cheaper—UPS or FedEx—based on certain characteristics of your shipment.
Use the decision tree below for a generalized idea of which option is cheaper for your situation:
NOTE: Multiple factors affect the cost of every shipment. When deciding which carrier to choose, also account for any surcharges, package characteristics, and service-level preferences that pertain to your unique shipment.
Key considerations when choosing between UPS and FedEx
Multiple criteria affect your total shipping costs and determine which shipping carrier option is cheaper. For example, if you’re shipping a 3-lb package within the United States, you’ll probably be better off using UPS. But if you’re shipping the same package from the United States to Argentina, FedEx is likely the much more affordable option.
Below are some of the core considerations affecting shipping prices.
Shipping destination
Distance is one of the biggest factors influencing total shipping costs. The further away your shipping destination, the more it’s likely to cost. This is especially true of international shipments, which typically incur additional costs due to customs, tariffs, and greater logistical complexity.
Shipping service level
Most carriers offer a variety of shipping service levels. The option you choose will play a large role in determining how much it costs to ship a package.
Shipping services that offer extra security for your package—such as tracking, insurance, and proof of delivery—are usually more expensive, though they can be essential for high-value or time-sensitive shipments.
NOTE: While it may be cheaper to select a lower level of service, the risk of goods being lost or damaged in transit is typically higher—which means you need to factor in the value of replacing goods that don’t make it to their destination or arrive in poor condition.
Delivery speed
Faster delivery methods, such as overnight, same-day, and two-day shipping, cost significantly more than standard ground services. This is because they require faster transportation methods and prioritized processing.
Slower services such as ground and economy shipping are typically much cheaper, but you must also consider the impact of prioritizing budget over speed. An ecommerce business might save a few dollars by shipping customer orders using ground services, but there’s a risk they’ll lose sales because customers aren’t willing to wait longer to receive their goods.
Read More: FedEx, UPS, and USPS Delivery Times
Package characteristics
Package characteristics—size, weight (actual and dimensional), and shape—have a large impact on shipping costs. Large, heavy, and odd-shaped packages incur higher shipping fees because they require more space, more fuel, and additional handling for transportation.
If a package is large but lightweight, it can still be quite expensive to ship. This is because many carriers use dimensional weight pricing, wherein packages are charged based on the space they occupy instead of their physical weight.
PRO TIP: If you’re struggling to determine the dimensional weight of your package, try our free dimensional weight calculator.
Additional fees
Additional fees, also known as surcharges, can make a massive difference to your final shipping costs. These fees vary between carriers, but some of the most common types include:
Additional Handling Surcharge
• FedEx Additional Handling Surcharge
• UPS Additional Handling Surcharge
Residential Delivery fees
Saturday Delivery fees
Proof of Delivery fees
Dangerous Goods fees
PRO TIP: You may be able to avoid some of these additional fees by rethinking your packaging strategy. For example, if your shipment can be broken down into multiple smaller packages, you might be able to avoid certain surcharges relating to oversized or heavy shipments.
Discounted shipping rates
Carrier discounts are a great way to reduce your per-package shipping costs.
These discounts come in many forms. Frequent shippers (for example, ecommerce businesses) can leverage high shipping volumes to negotiate better rates within carrier contracts, while promotional discounts are often available for individual shippers and new account holders.
Partnering with a third-party logistics (3PL) provider is an effective way to access bulk discounted shipping rates normally unavailable to low-volume shippers. Because they typically work with multiple businesses, 3PLs are better positioned to meet carriers’ minimum volume thresholds—and to pass those discounted rates on to you.
How to reduce international and domestic shipping costs
Minimizing your shipping costs gives you a stronger bottom line and puts you in a better position to mitigate unexpected disruptions. Comparing UPS and FedEx services is a good place to start, but additional strategies can further reduce your total costs.
Optimize your packaging
01
Keeping your packaging compact helps you avoid additional fees and minimize the dimensional weight and size of your shipment. If you’re trying to ship goods in a carton significantly larger than the goods it contains, cut it down to the right size to reduce your shipping costs.
This offers the bonus benefit of providing better protection for your package while it’s in transit, as loose items can shift around inside the carton.
Consider freight services
02
Major carriers and alternative shipping companies often provide less-than-truckload (LTL) and full-truckload (FTL) shipping services. LTL allows you to consolidate your shipment with other shippers’ to save money, while FTL allows you to book an entire vehicle at a typically reduced rate.
Break down larger shipments
03
In some cases, it may be more affordable to split your package into smaller shipments. If you’re shipping multiple items that can be delivered separately or disassembled into smaller components, you may be able to avoid added surcharges applicable to oversized or heavy shipments.
Apply for carrier discounts
04
If you’re a high-volume shipper or a new shipper, discounts may be available to save you money on your shipping costs. UPS’ Savings Program and FedEx’s Advantage Program both offer discounted shipping rates based on volume for loyal customers.
Get better shipping rates with Red Stag Fulfillment
Are high shipping costs eating into your budget and sapping your company’s profitability?
Red Stag Fulfillment helps businesses slash shipping and operating costs while improving the speed at which your customers receive their orders—resulting in more sales, less stress, and happier customers.
We negotiate UPS and FedEx shipping discounts by leveraging our combined shipping volume across all clients we serve, unlocking access to better shipping rates than you can achieve on your own. Reach out today to learn more about partnering with Red Stag Fulfillment.
