Less than two months ago, UPS announced a 50-point bump in its fuel surcharge and other fee increases. Its newest 2% payment processing fee hasn't even taken effect, but UPS just dropped a new set of rate updates, which will take effect June 2.

We'll help you understand the changes, how they may affect you, and what you can do to avoid or reduce them by partnering with ShipRx.

Zone Changes for Origin/ Destination ZIP Code Pairs

UPS occasionally changes its zones for specific zip code pairs (often those on the edge of a zone). While some of the past changes marked a decrease in rates, most shippers experienced an increase. The carrier made zone changes in April and October 2024 and will make another change on June 2. Charts detailing these changes will be available the day the change goes into effect.

Additional Fees

Zones 7 and above (a radius of 1,401 miles+) will experience additional handling and large package surcharges beginning June 2. These include:

●       Additional Handling Weight: $55.00
●       Additional Handling Dimensions (Length, Length + Girth, or Width): $38.00
●       Additional Handling Packaging/Other: $31.50
●       Commercial Large Package: $260.00
●       Residential Large Package: $305.00

UPS last updated these rates at the end of 2024, with a distinction for Zones 5+.

Remote Area Surcharge

Beginning June 2, Ground Saver packages within the Remote Area Zip Codes in the contiguous 48 states will be subject to a Remote Area Surcharge.

Shipping Charge Correction Audit Fee

When UPS discovers discrepancies between a parcel's declared and actual weight or dimensions, or there is an issue with the address, the carrier imposes a Shipping Charge Correction Audit Fee. The current fee is $1 per package or 6% of the entire shipping charge corrections that fall within the applicable invoice period— whichever is greater.

As of June 2, the fee will be the greater of $1.65 per package or 12% of the total shipping charge corrections during the applicable invoice period.

Over Maximum Limits

UPS has set size and dimension limits for packages it will transport. Packages can be up to:

●       150 pounds
●       165 inches in length and girth combined
●       108 inches in length

Packages with a large size-to-weight ratio require special pricing and dimensional weight calculations.

Until December 22, 2024, the Over Maximum Limits fee was $1,250. On December 23, 2024, it increased to $1,325. On June 2, it will go up again to $1,775. That's a 42% increase in less than 6 months.

Why the Increase + What You Can Do About It

UPS explained the rate increase, saying, "UPS rate updates help to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS."

Rates may be on the rise, but here's a little industry secret: they're not rising for everyone. Expert negotiations can help you avoid or reduce additional fees from the carriers. Trust ShipRx with your UPS contract negotiations and save on your shipping rates— even as they continue to rise.

Sign up for a free Savings Analysis and start saving as soon as your next invoice!