UPS Extends Peak Surcharges Past the Holidays
Jan 16, 2023 · 2 minutes read
What are the new demand surcharges, and who is affected?
According to a UPS customer update, U.S. domestic, U.S. import, and U.S. export shipments may face an additional handling surcharge of $3.50 per package or a large package surcharge of $40 per package on qualifying shipments. Additionally, customers billed for more than 20,000 packages during any week since October 2021 using UPSÂź Air Residential, UPSÂź Ground Residential, or UPS SurePostÂź Packages are also affected. A $.40 to $.60 surcharge will apply to each package over 105% of the weekly baseline average. Although higher than previous non-surcharge rates, these new fees are much lower than the $1.25 to $7 per package surcharge during the holiday period.How long will the UPS demand surcharges remain in place?
UPS's peak shipping surcharges for the holiday season remained in effect until January 14, 2023. Beginning January 15, 2023, the carrier's doing away with "peak" surcharges to implement "demand" surcharges. These new demand surcharges take effect until further notice. That's rightâ the demand surcharges are here to stay.How can I keep shipping costs low when UPS increases its rates?
Unless you're best friends with or a business advisor to UPS CEO Carol TomĂ©, you're unlikely to affect change on a UPS-wide level. The demand surcharges aren't going anywhere, but that doesn't mean you're stuck paying more.The founders of ShipRx have over 30 years of experience in the shipping industryâ writing contracts for the major carriers and later pivoting to help businesses like yours decrease their shipping expenditures. You may be paying 20-30% too much if you haven't negotiated your contract recently.
Todd
ShipRx Partner