No Residential Surcharges from UPS but Expect a Longer Peak Surcharge Season

August 22, 2019


News of UPS not implementing a residential surcharge during the upcoming holiday season is good news for retailers. “We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said CEO and Chairman David Abney in a news release. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”

However, the announcement is misleading. Last year, UPS was the only carrier to impose such a surcharge. The USPS, Regional Carriers and other parcel providers did not follow UPS’ position and thus created a cost issue for using UPS.

"It appears that UPS will offset the loss of this revenue in 2019 by implementing huge increases on other peak season surcharges as well as extending the duration of when the changes go into effect," our CEO, John Haber recently told Atlanta Business Chronicle.

Indeed, there may not be a residential surcharge this year but there will be other Peak Season surcharges - Over Maximum Limits (Oct 1 - Jan 4), Large (Oct 1 - Jan 4) and Additional Handling packages (Nov 24 - Jan 4). John further pointed out that Large Package peak surcharge cost per package, for example, is up over 20% and it now goes into place from October 1, 2019 thru January 4, 2020.  Last year the fee was only in place from November 18, 2018 thru December 22, 2018 which in effect doubles the number of weeks the charge applies.  For some of Spend Management Experts’ customers this translates into almost a 200% increase in fees for Large Packages this peak season.

Specific Peak Season Surcharges can be found on UPS’ website.

A summary is below:

 

Surcharge Effective Dates Peak Surcharge
Large Package Oct 1 – Jan 4 $31.45 per package
Additional Handling Nov 24 – Jan 4 $3.60 per package
Over Maximum Limits Oct 1 – Jan 4 $250 per package

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No Residential Surcharges from UPS but Expect a Longer Peak Surcharge Season

August 22, 2019


News of UPS not implementing a residential surcharge during the upcoming holiday season is good news for retailers. “We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said CEO and Chairman David Abney in a news release. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.” However, the announcement is misleading. Last year, UPS was the only carrier to impose such a surcharge. The USPS, Regional Carriers and other parcel providers did not follow UPS’ position and thus created a cost issue for using UPS. "It appears that UPS will offset the loss of this revenue in 2019 by implementing huge increases on other peak season surcharges as well as extending the duration of when the changes go into effect," our CEO, John Haber recently told Atlanta Business Chronicle. Indeed, there may not be a residential surcharge this year but there will be other Peak Season surcharges - Over Maximum Limits (Oct 1 - Jan 4), Large (Oct 1 - Jan 4) and Additional Handling packages (Nov 24 - Jan 4). John further pointed out that Large Package peak surcharge cost per package, for example, is up over 20% and it now goes into place from October 1, 2019 thru January 4, 2020.  Last year the fee was only in place from November 18, 2018 thru December 22, 2018 which in effect doubles the number of weeks the charge applies.  For some of Spend Management Experts’ customers this translates into almost a 200% increase in fees for Large Packages this peak season. Specific Peak Season Surcharges can be found on UPS’ website. A summary is below:  

Surcharge Effective Dates Peak Surcharge
Large Package Oct 1 – Jan 4 $31.45 per package
Additional Handling Nov 24 – Jan 4 $3.60 per package
Over Maximum Limits Oct 1 – Jan 4 $250 per package

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