Business & Investment

Ho ho ho: New UPS surcharge coming into effect on January 16th

UPS Inc. has a last-minute lump of coal for some large shippers. A new delivery surcharge that will take effect on January 16th, three weeks after the company’s 2022 price increase takes effect, and one day after the peak season delivery price drops.

An Atlanta-based company in a notice posted on its website on Tuesday (NYSE: UPS) He said all terrestrial delivery within the country and parcels traveling through the SurePost program with the United States Postal Service will be subject to an additional charge of 30 cents per package. ..

The company also imposes an additional $ 3.50 per piece for so-called additional handling cargo in “large” packages with cargo lengths of 96 inches or total length and girth of more than 130 inches. Charges an additional $ 40 per piece. .. Normally, these cargoes cannot be processed by the UPS conveyor system due to their size and weight, and as a result, they must be processed manually. This increases the cost of the company to provide the service.

According to UPS, the four additional charges that will come into effect next month will remain until further notice. The levy will be lower than what is currently in place throughout the peak delivery cycle ending January 15.

UPS will not increase an additional $ 250 for cargo that exceeds the company’s maximum weight and dimensional limits. However, according to Branden Burt, Operations Director of TransImpact LLC, UPS is raising prices in 2022 with so-called overmax shipments, and the company is trying to block 11.4% bids, so it is possible to maintain the status quo of additional charges. There is sex. consultant.

Ground housing and SurePost surcharges are based on weekly delivery activities from February 2020 onwards. This is the last normal delivery period before the COVID-19 pandemic causes a significant surge in e-commerce orders and delivery levels. The levy is for shippers who bid more than 25,000 parcels in any week after the end of February 2020 and exceed 110% of the amount bid in any week after 2020. Applies.

Customers who ship more than 1,000 packages in total, or more than 10 packages in one of the two categories, in any week after 2020 will be subject to additional processing and additional charges for large packages. increase.

UPS also imposes a series of new international shipping surcharges on many US import and export freight, and imposes a separate tax on all international transportation, regardless of origin and destination. According to UPS, all additional charges will take effect on December 26th and will remain until further notice. As with the new domestic tax, the new international surcharge will be lower than the one that expires on Christmas Day.

New domestic surcharges will be incurred three weeks after the company’s 2022 full and surcharge adjustments take effect. The latest move in UPS can be shocking for customers who are likely to not include the January 16 surcharge in their 2022 shipping budget, Bart said.

Mr. Bert said he did not expect the UPS to impose another set of additional charges on the shipper shortly after the annual rate change was implemented. “I’m surprised at this,” he said.

A UPS spokesman said in an email Wednesday that the company continues to experience strong demand for services and is monitoring the cost of servicing its customers. The company also manages the uncertainty of variants of the Omicron coronavirus and its potential impact on ordering and delivery activities.



Ho ho ho: New UPS surcharge coming into effect on January 16th

https://www.freightwaves.com/news/ho-ho-ho-new-ups-surcharges-to-take-effect-jan-16 Ho ho ho: New UPS surcharge coming into effect on January 16th

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