How will UPS holiday season surcharges affect your business this year? From October 1, 2023, through January 13, 2024, UPS will apply peak surcharges to shipments that qualify as oversized, unauthorized, or require additional handling and existing charges. FedEx also implemented peak season surcharge increases as well. Check out this blog for the differences.
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Peak Season Holiday Surcharge Increases
| Surcharge Name | January 15, 2023, to September 30, 2023 | October 1, 2023, to January 13, 2024 |
| Additional Handling Surcharge | Normal Charge + $ 3.50 | Normal Charge + $ 6.90 |
| Over Maximum Limits Charge | Normal Charge | Normal Charge + $ 410.00 |
| Large Package Surcharge | Normal Charge + $ 40.00 | Normal Charge + $ 74.90 |
A UPS Peak Surcharge will apply to packages that require Additional Handling and Large Packages for all U.S. domestic, U.S. import, and export shipments. The peak surcharge applies for qualifying customers:
- have been billed for more than 1,000 total packages in any week after February 2020, or
- have been billed for more than 10 combined Large Packages or packages requiring Additional Handling in any week after February 2020, or
- signed up for a new UPS account after December 31, 2020
UPS Residential Peak Surcharge
An additional peak surcharge will apply to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost packages. If a customer shipped more than 20,000 packages during any week following October 2021, the following charges will be added to the shipment cost. These charges will apply from January 15, 2023 to October 28, 2023
| Service Level | 105% to 125% | 125% to 150% | over 150% |
| All Other UPS Air Residential | $0.40 per package | $0.50 per package | $0.60 per package |
| UPS Next Day Air Residential | $0.40 per package | $0.50 per package | $0.60 per package |
| UPS Ground Residential | $0.40 per package | $0.50 per package | $0.60 per package |
| UPS SurePost | $0.40 per package | $0.50 per package | $0.60 per package |
UPS holiday surcharges apply to all UPS customers. Not just those shipping packages in the e-commerce space. Parcel shippers must understand their shipping profiles to ensure their agreement is fair. Having accurate data will protect your bottom line and reveal shipping intelligence to lower costs. Contact our parcel experts to gain valuable data and insight that will help understand how these increases in transportation impact your bottom line.
