Reminder: More UPS Surcharge Increases Are Coming

 In Industry News

UPS, the world’s largest parcel delivery provider, raised rates at the end of 2017. Many shippers may have forgotten there is another round of increases approaching this summer, too. At the time, UPS stated that the rate increases were necessary to keep up with demand while maintaining the same level of customer service.

The overall increase was 4.9%, but most of the individual surcharges went well above that. In March 2018 the company also increased General Freight Rates on non-contractual LTL shipments by 5.9%. All of these increases are in line with industry raises.

The following two additional surcharges will be effective on July 8th:

• Large Package Surcharge: The price for a U.S. domestic package delivered to a residential address will rise from $80 to $90. This is an increase of 12.5%.

• Additional Handling: The surcharge for U.S. Domestic packages that weigh more than 70 pounds will now cost $19 more per package.

The increasing demand from the eCommerce world and competition from online retailers like Amazon have caused a lot of disruption in the small parcel shipping industry. Expect more increases later in 2018, and beyond, as small parcel carriers continue to figure out what this macro-business change means to their operating costs.

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