UPS Announces Peak Season Holiday Surcharges for 2020

 In Industry News

Today, UPS announced new Peak Season Surcharges with some going into effect as early as October 4, 2020, and lasting until January 16, 2021. Not surprisingly, the surcharges are focused on Residential and Large-sized deliveries.

A portion of the surcharges is squarely focused on high-volume shippers (>25,000 packages per week), and having the potential to add $1 to $4 per package in cost. The amount of the surcharge is based on the percentage of package volume shipped weekly during the peak period compared to the volume shipped by the company in February of 2020. These surcharges are applicable from November 15 until January 16, 2021.

From the UPS website:

Peak Surcharge – Applied to UPS® Air Residential, UPS® Ground Residential and UPS SurePost® Packages
A Peak Surcharge will apply to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost packages, for all U.S. origins and destinations, for qualifying customers who, at any point during the Peak Period, ship more than 25,000 packages per week.

Other surcharges focused on large and packages requiring additional handling are being implemented effective October 4 until January 16, 2021. There is a 1,000 package per week threshold for these surcharges, and some other details shippers need to familiarize themselves with.

From the UPS website:

Peak Surcharge – Other charges
A Peak Surcharge will apply to Large Packages, packages that are Over Maximum Limits, and packages that require Additional Handling, for qualifying customers who at any point during the Peak Period ship more than 1,000 packages per week or ship more than 10 packages per week that otherwise qualify for any of these Peak Surcharges. The Peak Surcharges set forth below will apply to all U.S. domestic, U.S. import, and U.S. export shipments, for all origins and destinations, in the amounts set forth below during the specified Peak Period.

The full details of the announcement can be found here: https://www.ups.com/assets/resources/media/en_US/2020_UPS_Peak_Surcharges.pdf

As always, it is important for you as a shipper to understand the cost impact of these new surcharges. Contact info@transimpact.com for a no-obligation analysis of what these new surcharges will mean to you.

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