UPS to add holiday-season surcharges on United States packages this year
Jun 21 2017
As an example, UPS said a five-pound next-day air package from Atlanta to Philadelphia will cost 1% more to ship.
In a first for the delivery company, UPS will charge "Peak" rates during certain periods: Between Nov. 19 and December 2., it'll cost $0.27 per package for all ground shipments sent to residential addresses.
Parcels sent to homes using next-day air will be charged an additional 81 cents in the week ending 23 December, while shipments through the deferred network will be levied a per-package fee of 97 cents.
At various times throughout the year UPS must flex its delivery network to meet increased demand, including almost doubling its normal volume during the November and December holiday season.
To combat the influx of online order delivery costs, residential shipments during peak delivery periods in November and December will have a new fee.
To meet peak volume demand, UPS temporarily acquires (often at shorter-term premium rates) additional air and truck cargo capacity, facilities and additional sorting and delivery personnel, the company said. That period includes Black Friday and Cyber Monday, which are considered the highest-volume online shopping days of the year.
UPS (ups) wants retailers and their customers to pony up more money for their holiday season packages.
UPS will also apply a peak surcharge on specific worldwide air shipping lanes during certain periods of the year, the company said. Those seasonal fees are on top of regular surcharges for large or heavy items. A similar package shipped to a commercial address would have no additional cost. Last year, UPS hired 95,000 more employees to help manage the holiday traffic. That's roughly 11 million more packages per day than during nonpeak times.
The surcharges could push retailers to increase prices to account for higher delivery fees, the Wall Street Journal reported.