Understanding Carrier Adjustments in Shippo

As an e-commerce retailer, your objective is to reduce shipping expenses in order to enhance profit margins. To do that, it’s important to understand carrier adjustments—additional charges assessed by the carrier (after shipment is in transit) that can increase the total cost of shipping a package. 

Common carrier adjustments and how to avoid them

Fuel carrier adjustment

A fuel carrier adjustment is an additional fee charged by carriers to account for fluctuations in fuel prices. Fuel adjustments are typically calculated as a percentage of the base rate, and pricing varies by carrier and by the shipping service used.

You can review a carrier’s fuel adjustment rate before shipping. If you have flexibility in delivery timelines, choosing ground instead of air may help reduce shipping fees and potential fuel-related carrier adjustments. 

Customs duty carrier adjustment

A customs duty carrier adjustment (also called a customs duty fee or tariff) is an additional charge imposed on imported goods by a country’s government. Duties typically depend on the value or quantity of goods and vary widely based on the product, origin/destination, and trade policies. Given these regulations, there is no way to avoid or minimize this carrier adjustment when it applies.

To learn more, please visit: Understanding Customs Declarations.

Residential carrier adjustment

A residential carrier adjustment is an extra charge applied when delivering to a residential address rather than a commercial/business address. Carriers may classify residences as standalone homes or businesses operating from a residential location. This reflects the added cost and logistical complexity of residential delivery.

Residential carrier adjustments are applied to some FedEx and UPS services. Unlike some other shippers, USPS does not add carrier adjustments for residential delivery.

Peak carrier adjustment

A peak carrier adjustment is an additional fee on top of a carrier’s base rate during periods of high demand. Early October to mid-January is a common peak period, as carriers offset higher costs during the busy holiday season.

Depending on package details and destination, you may see meaningful savings by choosing different carriers or service levels.

Shipment adjustments (billing corrections)

A shipment adjustment may apply when there’s a discrepancy in shipment data—such as differences in dimensions, weight, or address quality—resulting in a billing correction.

Best practices to reduce adjustment carrier adjustments:

• Weight: Enter accurate weights when purchasing labels. Because carrier audits are very precise, it’s best practice to round up to account for home scale inaccuracies.

  • Example: if your package weighs 7.2 lbs, enter 7.5 lbs (not 7 lbs).

• Dimensions: Enter accurate dimensions when purchasing labels. Dimensional weight (volumetric weight) may apply, and correct dimensions help avoid underpaid postage. Because carriers audit accurately, it’s best practice to round up to account for changes during transit.
  • Example: if your package measures 5.5 x 5.5 x 5.5, enter 6 x 6 x 6. In most cases, carriers round up to the nearest inch.
• Correct address: Enter the correct address and ZIP code for origin and destination. Discrepancies may result in extra charges. After purchasing a label, double-check that the address is properly displayed.

How Shippo passes along carrier adjustments

Any carrier adjustments applied to your account can be viewed in your invoices and transactions on the Billing tab. Carrier adjustments are typically received within 30–60 days of shipping the parcel (timing varies based on the carrier adjustment type and shipment details). 

Carriers apply different carrier adjustments based on their service levels and offerings. Details by carrier are below.

USPS carrier adjustments

If USPS finds an issue with a package, USPS will charge the difference between the cost of the original label and what the cost should have been.

Tip: To avoid rate adjustments, make sure you’re using the appropriate dimensions and weight for the service.

For more information on avoiding USPS carrier adjustments, you can visit this USPS guide referenced on their site.

Fees and carrier adjustments may apply to Priority Mail, Priority Mail Express, First Class International, and Ground Advantage shipments based on package volume and dimensions.

Dimensional/Nonstandard carrier adjustment details

If dimensions are not provided or are inaccurate, a $1.50 fee will be added for packages that are greater than one cubic foot in volume or have a box length greater than 22 inches.

If packages exceed machinable sorting requirements, nonstandard sizing fees apply as follows:

• Packages greater than 2 cubic feet in volume: $15.00 carrier adjustment

• Packages with a box length over 22 inches: $4.00 carrier adjustment

• Packages with a box length over 30 inches: $15.00 carrier adjustment 

To learn more, please visit: USPS Nonstandard Fees & Dimensional Noncompliance Fees.

What is dimensional weight (DIM)? 

Dimensional weight (DIM) is a USPS pricing method for oversized packages that considers both size and weight and is based on package volume rather than actual weight. USPS uses DIM for domestic Priority Mail, Priority Mail Express, Non-Lightweight Parcel Select, and Ground Advantage packages that exceed 1 cubic foot.

When USPS issues an adjustment tied to a weight discrepancy, it may be tied to dimensional weight, not the actual weight entered at label creation.

Keep in mind when shipping USPS:

• Nonstandard Fee & Dimensional Noncompliance Fee: If you enter incorrect dimensions—or a package has a side exceeding 20" or 30" or is over 2 cubic feet—you may incur an added carrier adjustment.
• Dimensional Weight divisor: The weight divisor has been lowered to 166. DIM formula: (Length × Width × Height) / 166.

FedEx carrier adjustments

Customers using Shippo’s FedEx platform account are subject to additional carrier adjustments when applicable, and any additional charges are reflected on the Shippo invoice.

In addition to the common carrier adjustments above, FedEx has carrier-specific charges that may apply.

• Delivery Area carrier adjustment: $13.25 per package for domestic shipments to select ZIP codes in the contiguous U.S. designated as Remote.

To learn more, please visit: FedEx’s full-service guide and a guide to 2023-specific changes.

Non-Machinable carrier adjustment (FedEx definition)

Applies to:

• Any item with one dimension > 27 inches

• Any item with any two dimensions each > 17 inches

• Any item weighing > 35 lbs

• Any item packaged in a cylindrical shipping tube

Pick-Up carrier adjustment

Applies when you request a pickup for a FedEx package, including requests through FedEx electronic shipping solutions or by calling FedEx to schedule a pickup. $4 per package is applied when customers call and request a pickup.

Additional Handling carrier adjustment:

Assessed for packages requiring special handling (as determined by FedEx), including but not limited to:

Dimension

• Longest side > 48 inches
• Second-longest side > 30 inches
• Length + girth > 105 inches, where length + girth = length + (2 × height) + (2 × width) 
  

Weight

• U.S. Express & Ground: actual weight > 50 lbs
• International Express & Ground: actual weight > 70 lbs 

Packing (non-standard packaging)

• Not fully enclosed in standard cardboard

  • Is not fully encased in an outer shipping container

  • Is encased in an outer shipping container not made of cardboard

• Wrapped or secured externally

  • Is covered in shrink wrap or stretch wrap

  • Is bound with metal, plastic, or cloth banding

  • Has wheels, casters, handles, or straps

• Soft-sided packaging over size limits

  • Is encased in a soft-sided pack (poly bag or bubble mailer) exceeding:

    • 18 inches on the longest side,

    • 13 inches on the second-longest side, or

    • 5 inches in height

• Cylindrical or irregular shape

  • Is cylindrical

  • Could become entangled in equipment or cause damage to other packages or FedEx equipment

Fuel carrier adjustments (FedEx)

FedEx incorporates a fuel carrier adjustment into every shipping rate, fluctuating with fuel prices. If your shipment’s dimensions or weight are audited and found to exceed what was entered at label creation, you may incur additional fuel carrier adjustments based on the audited dimensions.

To learn more, please visit: FedEx: U.S. Fuel Surcharges.

DHL Express carrier adjustments

Fuel carrier adjustments (DHL Express):

DHL Express includes a fuel carrier adjustment in each shipping rate. This fuel adjustment is variable and changes as fuel prices change. DHL applies it as a percentage of the shipping rate, and the rates shown in Shippo are inclusive of the fuel carrier adjustment. Example: base rate $50 with an 8% fuel adjustment adds $4, so the displayed rate is $54.

Remote Area carrier adjustments (non-disputable)

A remote area is a postcode (or, without a postcode, a suburb/town) that is difficult to serve. Delivery to locations on DHL’s remote area list warrants a remote area carrier adjustment. DHL remote areas can change daily; because of this, the remote area carrier adjustment is non-disputable and may not appear on the linked list.

Emergency Situation carrier adjustment (non-disputable)

Effective April 10, 2022, this is a temporary carrier adjustment to cover operating cost increases due to an emergency outside of DHL’s control (including changes in market dynamics and air capacity availability). DHL may adjust this as market conditions evolve. The article links to additional details and the pricing table.

To learn more, please visit: DHL Emergency Situation Surcharge

Rounding note (DHL Express)

DHL does not accept partial dimensions and rounds up all measurements to the nearest whole inch. Example: 10.5 × 10.5 × 1.5 inches will be audited as 11 × 11 × 2 inches. To prevent billing discrepancies, round up each dimension when creating a label.

To learn more, please visit: DHL Surcharges.

UPS carrier adjustments 

Customers using Shippo’s UPS carrier account may be subject to additional carrier adjustments when applicable, reflected on the Shippo invoice. UPS may apply carrier-specific charges at its discretion, including updates effective August 17, 2025.

Dimensional rounding changes (effective August 18, 2025)

UPS rounds all fractional measurements up to the next whole inch (length, width, height) for billable dimensions. Example: 11.1 inches in length is billed as 12 inches. Best practice: measure accurately and enter correct dimensions to avoid unexpected adjustments.

Domestic Large Package carrier adjustment (LPS) (effective August 17, 2025)

Previous rule: based on length plus girth.
New rule: applies to domestic packages meeting any of the following:

• Cubic size > 17,280 cubic inches (Length × Width × Height in inches)
• Actual weight > 110 lbs
• Other existing LPS criteria remain unchanged

Domestic Additional Handling Charge (AHC) (effective August 17, 2025)

Previous rule: applied to packages exceeding length plus girth limits.
New rule: applies to domestic packages meeting: cubic size > 8,640 cubic inches. Other existing AHC criteria remain unchanged. 

Additional Handling carrier adjustment (all services)

Assessed for packages requiring special handling (as determined by UPS). Examples include:

Weight

• Domestic: actual weight > 50 lbs (or average weight per package > 50 lbs if individual weights aren’t specified)
• International: actual weight > 70 lbs (or average weight per package > 70 lbs if individual weights aren’t specified)

Length & Width

• Longest side > 48 inches

• Second-longest side > 30 inches

Packaging

• Not standard corrugated packaging

  • Not fully encased in corrugated cardboard

  • Encased in a non-cardboard outer container (e.g., canvas, leather, metal, wood, plastic, styrofoam)

• Soft-sided packaging over size limits

  • Soft-sided packs (e.g., poly bags, bubble mailers) exceeding:

    • 18" on the longest side, or

    • 14" on the second-longest side, or

    • 6" in height

• Wrapped or bundled

  • Covered in shrink wrap or stretch wrap

  • Bound with metal, plastic, or cloth banding, or contains wheels, casters, handles, or straps

• Cylindrical

  • Cylindrical items (e.g., barrels, drums, mailing tubes)

• Requires irregular sortation

  • Routed through irregular package sortation (e.g., packages ≤ 1 inch in height)

• Other

  • Any other package requiring special handling per UPS’s discretion

Note: If a package meets multiple criteria, only one Additional Handling charge applies—in this order: Weight, Length + Girth, Length, Width, Packaging. Additional Handling does not apply when the Large Package carrier adjustment is applied.

How UPS applies Additional Handling

If a package meets multiple criteria, only one Additional Handling charge applies—in this order: Weight, Length + Girth, Length, Width, Packaging. Additional Handling does not apply when the Large Package carrier adjustment is applied. 

Over Maximum (OverMax) carrier adjustment

Applied to packages exceeding: 150 lbs actual weight, 108 inches in length, or 165 inches length + girth combined. UPS may return packages exceeding these limits at the shipper’s expense. The OverMax carrier adjustment starts at $1,150 per package.

To learn more about the latest surcharge details, please visit: UPS’s official surcharge information.

Evri carrier adjustments 

Evri applies carrier adjustments for reasons including delivery location, parcel weight, and delivery method:

Delivery location

• Remote areas: some UK locations have a location charge due to distance from depots or ferry requirements

Parcel Weight

• Overweight: shipments heavier than declared or exceeding maximum weight
• International: larger parcels may incur additional costs depending on the destination

Delivery method

• Courier option affects overall price
• Peak season (e.g., Black Friday/Christmas): additional charges to maintain service levels

Other carrier adjustments

• Relabeling
• Re-packaging
• Undeliverable parcels
• Data correction

International shipping note

Evri international prices include shipping and any fuel carrier adjustment. The recipient is responsible for customs/duties/taxes, which vary by country and parcel contents.

To learn more, please visit: Evri How to weigh your parcel. 

DPD carrier adjustments 

DPD may apply carrier adjustments for:

• Oversized/overweight parcels: e.g., in the UK, parcels exceeding 30 kg or 100 cm length
• Manual handling: e.g., UK parcels exceeding 175 cm length or 300 cm girth
• Non-conveyable parcels: e.g., Germany parcels exceeding 120 cm length or 60 cm width/height
• Address corrections
• Remote area deliveries
• Dangerous goods (limited quantities)
• Return to sender

To learn more about carrier adjustment rates and conditions that vary by country and may change over time, please visit DPD's official website.

Royal Mail carrier adjustments 

Royal Mail may apply carrier adjustments for discrepancies in parcel weight, size, or postage. While many carrier adjustments are generally non-disputable, Royal Mail reconciliation may provide a path to review potential disputes through Royal Mail contacts.

Discrepancies may occur due to:

• Shape changes in soft/non-rigid packaging during automated measurement
• Inaccurate weight/dimension declarations
• Packaging, barcode, or postage errors

Common Reasons for Royal Mail carrier adjustments

Additional Notes:

• These items require heightened accuracy in dimensions, weight, and barcode quality.
• Extra documentation (photos, scale readings, manifest verification) is mandatory before filing any dispute.

To learn more about surcharge rates and conditions that can vary and may change over time, please visit Royal Mail's website.

To learn more about how to avoid certain carrier adjustments, please visit: Tips to Avoid Carrier Adjustments.