UPS published a rate update on July 15, 2024, revealing that its surcharge fees will jump twice during the upcoming busy holiday shopping season, first in late September, and again in mid-November.
Supply Chain Dive reported that the 2024 holiday surcharges are pricier compared to previous years. That appears to be due in part to Temu, Shein, and the USPS.
The publication said UPS CEO Carol Tomé told analysts on a recent call that the carrier anticipates a peak volume that justifies the pricing. “UPS is grappling with a surge in volume from new e-commerce customers leveraging its SurePost service, CFO Brian Dykes said.” Media outlets had reported they believed that was a reference to Temu and Shein which ship direct to customer from China.
“The company’s network capacity will soon be tested further by the emergence of its new contract with the U.S. Postal Service. The company expects to fully onboard the Postal Service as an air cargo customer before the holidays,” Supply Chain Dive continued.
According to the UPS website, the Additional Handling Surcharge is currently $3.50 and will rise to $7.75 from Sept. 29 through November 23, and will rise again to $9.95 through December 28, 2024 (just about the time to expect new shipping rates for 2025).
Large Package and Over Maximum Limits surcharges will likewise increase at the end of September and again in mid-November through the end of December.
Meanwhile, it’s unknown if the US Postal Service will implement peak rates for the holiday season. Last year it skipped it as it worked to encourage shippers to use the new USPS Ground Advantage offering. It last announced peak rates on August 10, 2022.
Whelp there goes my fishing rods. Just keep kicking the small seller while he’s down. Time to file for SSI, I’d make more money and won’t work my tail off.
ebay just posted another UPS rate increase August 12th