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UPS to Charge Merchants Extra for Holiday Shipping

UPS shipping

UPS shippingOnline sellers who use UPS will pay more for shipping their holiday orders this year. UPS announced a new peak charge for US Residential deliveries and large packages, among other services. In addition, UPS will apply a peak surcharge on specific international air shipping lanes during certain times of the year.

Press release follows:

UPS today announced a new peak charge applicable during selected weeks in November and December 2017 for U.S. Residential, Large Packages and packages Over Maximum Limits. The new charge is designed to enable UPS to continue to provide best-in-class value to customers while offsetting some of the additional expenses incurred during significant volume surges.

“We’re focused on helping our customers achieve success during some of their most important selling seasons,” said Alan Gershenhorn, UPS Chief Commercial Officer. “To meet their requirements, UPS flexes its delivery network to process near double our already massive regular daily volume, and that creates exceptional demands.”

To meet peak volume demand, among many other investments, UPS acquires on a temporary basis and often at shorter-term premium rates, additional air and truck cargo capacity, temporary facilities, and additional sorting and delivery personnel.

Further, shipments which are larger, heavier, or have unconventional shapes or sizes create even greater operational complexity during high-demand periods.

“Our goal is to help every customer obtain the delivery capacity they need, combined with predictable and timely service they count on from UPS, even when there is limited capacity in the UPS network.” Gershenhorn continued.

The company’s new per-piece peak charge for the U.S. 48 contiguous states and intrastate Alaska and Hawaii for applicable package types and periods is summarized in this chart (available for viewing in the press release on the UPS press release – link below):

“With the new peak charge, per-package costs for many shipments will only marginally increase during this very busy time of the year.” Gershenhorn continued.

For example, a five-pound UPS Next Day Air(R) package shipped from Atlanta, GA to a residential address in Philadelphia, PA will increase about one percent, compared to non-peak shipping times. A similar package shipped to a commercial address would experience no additional cost.

From November 19 through December 23, UPS will also apply peak surcharges to Large Packages and packages that exceed maximum size limits. These charges are in addition to normal surcharges applicable to such packages. When shipping packages that exceed UPS’s published maximum size limits, customers are encouraged to consider using UPS Freight.

In addition, UPS will apply a peak surcharge on specific international air shipping lanes during certain periods of the year.

During the 2016 holiday season, the company’s average daily volume exceeded 30 million packages on more than half of the available shipping days. In contrast, on an average non-peak day, the company ships more than 19 million packages. The company hired about 95,000 seasonal employees during the 2016 peak shipping period. Throughout all of 2016, UPS shipped almost 5 billion packages, with almost 3 million packages and documents shipped every day by the company’s airline. Almost 3% of global GDP and 6% of U.S. GDP flows through the UPS network every day.

SOURCE: UPS Press Release

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

One thought on “UPS to Charge Merchants Extra for Holiday Shipping”

  1. Must be horribley expensive to drop the boxes off at the nearest post office and let the post office do the actual delivery of them. Our little office of 5 routes will get up to 50 a day from ups. What they pay the post office for the last mile is chicken feed to what they are saving.

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