UPS 2019 Peak Season Surcharges: Higher & Longer
While most of us are wrapping up summer vacation, UPS is already preparing for the holiday season. On Friday, August 16, 2019, UPS announced its surcharges for the upcoming peak season. If you ship with UPS, you’ll want to take note. The surcharges will apply to all U.S. Domestic, U.S. Import, and U.S. Export Service Levels for all Domestic and International destinations. It also needs to be pointed out that the way the surcharges are being implemented is different than in recent years.
The following chart shows the Peak Season Surcharges from the two major carriers, UPS and FedEx, over the past three years. FedEx has yet to announce any 2019 peak season surcharges, but we expect the announcement will be coming shortly.
One thing that stands out is that, unlike the last two years, UPS will not be charging extra for residential shipments. This is an indication UPS feels it is ready to handle the deluge of holiday packages without having to pass along the extra costs to customers.
UPS’s CEO David Abney stated: “We are continuing to build momentum as our transformation matures and we enhance the company’s operating efficiency. This announcement enables UPS customers to plan now for a great holiday shopping season and to satisfy their customers by utilizing UPS’s industry-leading on-time delivery service, once again this year.”
However, in keeping with the trend of past years, shippers sending large, oversized, or heavy packages requiring additional handling will again be subject to much higher fees. The surcharges for Additional Handling (AHS), Large Package/Oversize (LPS), and Over Max (OMS) are going up substantially. For example, the surcharge for Additional Handling has increased to $3.60 (as compared to $3.15 last year). The Over Max Surcharge has the largest increase of 51.5% (from $165 to $250).
UPS’s Peak Season Surcharges will be in effect for longer than in past years as well, with all of them starting much earlier and finishing later. Shippers will be subject to about fourteen weeks of surcharges for LPS and OMS, and about five weeks of peak season surcharges for AHS. All of the peak season surcharges will continue into January, impacting the busy return season. Last year, the surcharges ended on December 22.
You can read the company’s announcement on its website: https://www.ups.com/us/en/shipping/rates-update.page