UPS Keeps Peak Surcharge Party Train Chugging Along
You’ve likely put the holiday decorations away and moved from the “most wonderful time of the year” to New Year’s resolutions and the daily grind. However, one carrier is not quite ready to say goodbye to the increased rates of the peak shipping season. In August, UPS announced its yearly holiday shipping surcharge rates, which were set to begin on October 30, 2022, and expire on January 14, 2023. With the expiration date clearly in sight, UPS has announced a new set of demand surcharges for qualifying customers, which will go into effect on January 15, 2023.
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 UPS® Air Residential, UPS® Ground Residential, or UPS SurePost® 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 right— 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 Tomé, 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 industry— 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.
You don’t need to wait until the end of your contract, and you won’t need to pay a dime unless the ShipRx team can help you save money. With a 100% success rate, the only thing you have to lose is dollars off of your bill. Get in touch with us today for a free savings analysis and balance out the new demand surcharges with a reduced shipping rate.
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