As the holiday shipping season ramps up, UPS is rolling out aggressive discounts targeted at small and mid-sized businesses (SMBs). Through a new partnership with American Express, the logistics giant is offering deep shipping discounts, waived surcharges, and added perks—all aimed at helping SMBs stay competitive during peak delivery season.

Holiday Discounts Designed for SMBs

UPS is offering reduced base transportation rates across ground, air, and international shipping for businesses enrolled in American Express’ Business Savings Suite. For SMBs shipping 31 or more packages per week, the discounts are even more substantial—up to 72% off base rates for certain air services.

But it doesn’t stop there. UPS is also cutting residential and fuel surcharges by 50% on domestic air and ground shipments. This program is live now and will run through February 28, 2026, covering the full holiday and post-holiday shipping cycle.

Why UPS Is Focusing on SMBs

The move is strategic. While large enterprise clients bring scale, SMBs tend to offer higher margins per package. As UPS shifts away from high-volume customers like Amazon, it’s doubling down on its efforts to attract—and retain—smaller businesses.

According to UPS’s latest quarterly results, SMBs now make up 32% of its U.S. parcel volume, a 230 basis-point increase from last year. With competitors like FedEx also chasing this segment, offering aggressive pricing is now a core tactic to gain market share.

What It Means for Manufacturers and Supply Chain Teams

For manufacturers, suppliers, and logistics professionals, this new program could be a game-changer.

First, it’s a great time to reevaluate your shipping strategy. If your weekly volumes are hovering near a discount threshold, even a slight increase could trigger significant savings. Second, understanding how these discounts work can give you leverage when negotiating carrier contracts or considering alternate service providers.

Finally, these new rate structures can help with SMB shipping cost optimization—a critical need as businesses face growing pressure to deliver faster while keeping margins intact.

Key Details to Know

• Discounts available through the American Express Business Savings Suite
• Program ends February 28, 2026
• Surcharge reductions apply to fuel and residential fees
• Volume tiers unlock deeper discounts (31+ packages/week for max savings)
• Minimum charges and published surcharge periods still apply

Looking Ahead

With holiday surcharges often cutting into profits, UPS’s SMB-focused offer is timely. It helps level the playing field for smaller firms that can’t absorb seasonal price hikes as easily as their larger competitors.

For businesses in manufacturing and industrial supply, taking advantage of these shipping cost optimizations can lead to more predictable logistics spending—and better service for your own customers.

Now is the time to audit your shipping strategy, align your volume tiers, and tap into the new savings window that UPS and American Express have opened.