UPS vs FedEx: Complete Price and Service Comparison

For ground shipping, UPS typically undercuts FedEx by 1-3%. The difference is small but consistent:

• 5 lb package, Zone 5: UPS $14.50 vs FedEx $14.85 (UPS saves $0.35)
• 10 lb package, Zone 4: UPS $18.25 vs FedEx $18.75 (UPS saves $0.50)
• 20 lb package, Zone 6: UPS $24.50 vs FedEx $25.25 (UPS saves $0.75)

Both deliver in 1-5 business days with similar real-world performance. Choose UPS for ground unless you have a better FedEx contract.

FedEx built its reputation on overnight and 2-day delivery, and maintains a price advantage on express services:

• 2-Day, 5 lbs, Zone 5: FedEx $28.50 vs UPS $29.75 (FedEx saves $1.25)
• Overnight, 3 lbs, Zone 4: FedEx $46.25 vs UPS $48.50 (FedEx saves $2.25)
• Priority Overnight, 10 lbs: FedEx $85.50 vs UPS $89.00 (FedEx saves $3.50)

For time-critical shipments, FedEx offers slightly better value while maintaining excellent reliability.

Both carriers charge extra for residential deliveries:

• UPS residential surcharge: $6.55 per package
• FedEx residential surcharge: $6.75 per package

This surcharge applies to ALL residential addresses, regardless of package size. For a 5 lb package to a home:

• UPS Ground: $14.50 + $6.55 = $21.05 total
• FedEx Home Delivery: $14.85 + $6.75 = $21.60 total

Pro tip: For residential deliveries, consider USPS Ground Advantage which has no residential surcharge and costs just $5-8 for similar packages.

Both UPS and FedEx use the same dimensional weight formula:

Dimensional weight = (Length x Width x Height) / 139

You pay whichever is greater: actual weight or dimensional weight. Example for a 12x12x12 inch box:

• Dimensional weight: (12 x 12 x 12) / 139 = 12.4 lbs (rounds to 13 lbs)
• If actual weight is 5 lbs, you pay for 13 lbs

Neither carrier has an advantage here - both will charge the same dimensional weight. USPS uses a divisor of 166, meaning the same box would calculate as 10.4 lbs (rounds to 11 lbs), offering a small advantage for oversized, lightweight packages.

Both carriers offer excellent tracking, but with different strengths:

UPS:

• UPS My Choice provides detailed delivery windows and rerouting
• More granular scan updates (often every hub)
• Better integration with enterprise systems (EDI, APIs)

FedEx:

• FedEx Delivery Manager for residential preferences
• Slightly better real-time GPS tracking for express
• Excellent photo proof of delivery

For most shippers, both are equally good. Enterprise shippers may prefer UPS integration capabilities.

Both carriers include $100 declared value at no extra cost:

UPS:

• $100 included, additional coverage at $0.90 per $100
• Claims filed online, typical resolution 5-10 business days
• Strong documentation requirements (photos, receipts)

FedEx:

• $100 included, additional coverage at $0.90 per $100
• Claims filed online, typical resolution 5-10 business days
• Similar documentation requirements

Claims processes are nearly identical. Neither carrier has a significant advantage. For high-value items, consider third-party insurance (Shipsurance, U-PIC) which is often 50% cheaper.

UPS:

• Larger ground network with more delivery vehicles
• Better coverage in industrial and rural business areas
• Stronger union workforce (reliability but occasional strike risk)

FedEx:

• Ground network uses independent contractors (faster expansion)
• Better international air network
• Stronger in express and time-definite services

Bottom line: Both cover 100% of US addresses. UPS has a slight edge for ground; FedEx has a slight edge for express.