Finally some good news for online sellers on the shipping cost front – UPS announced today it will waive residential surcharges during the 2019 holiday shopping season. Those surcharges are not insignificant, and today’s announcement spells good news for merchants who feel pressured to offer “free shipping” (a better term is “shipping included”).
UPS also announced changes to other surcharges, announcing it was modifying over-maximum, large and additional handling peak surcharges.
Press release follows:
UPS today said the company will not apply additional surcharges for U.S. residential deliveries during the busy 2019 holiday season, unless by contractual exception or for those requiring special handling. The company once again expects to handle a record number of holiday deliveries during peak season 2019.
“We are continuing to build momentum as our Transformation matures and we enhance the company’s operating efficiency,” said David Abney, UPS Chairman and CEO. “This announcement enables UPS customers to plan now for a great holiday shopping season and to satisfy their customers by utilizing UPS’s industry-leading on-time delivery service, once again this year.”
During 2018 and 2019, UPS has added 20 additional 747-8 and 767 aircraft, more than 700,000 additional packages per hour of automated sortation capacity in new Super Hubs, and updated processing and delivery facilities. The company continues to upgrade its air and ground capacity as part of a previously announced capital investment plan. More than 75 percent of eligible packages will be processed in the new automated facilities during the 2019 holiday season, and the company forecasts attaining 100 percent of eligible volume in 2021.
UPS today announced modifications to special peak surcharges for over-maximum, large package or additional special handling items requiring manual processes or off-line handling. From Nov. 24, 2019 to Jan. 4, 2020, packages with unusual dimensions requiring special handling will receive an additional handling surcharge. From Oct. 1, 2019 to Jan. 4, 2020, packages designated as ‘Large’ under UPS’s Tariff or packages above the company’s small package network size and weight limits, will receive an added surcharge.
Additional information is available at this shipping rates page. Over-maximum shipments are recommended to be shipped through the UPS Freight network.
UPS recently announced several new capabilities and network enhancements planned for 2019 and 2020. UPS My Choice for Business is a new service designed to help small businesses attain enhanced inbound and outbound shipping visibility and attain better control to improve planning and forecast staffing. The company is also partnering with CVS Pharmacy, Michaels Inc. and Advance Auto to add about 12,000 new UPS Access Point Locations by year-end 2019. The new locations bring the total UPS Access Point Locations to 21,000 in the U.S., providing an unrivaled number of alternate pick-up and drop-off locations.
“We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said Abney. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”
SOURCE: UPS Press Release