“With the new peak charge, per-package costs for many shipments will only marginally increase during this very busy time of the year,” UPS Chief Commercial Officer Alan Gershenhorn said.
To meet peak volume demand, the Atlanta-based parcel giant acquires on a temporary basis and often at shorter-term premium rates, additional air and truck cargo capacity, temporary facilities, and additional sorting and delivery personnel.
During the 2016 holiday season, UPS’ average daily volumes exceeded 30 million packages on more than half of the available shipping days, and the company hired about 95,000 seasonal employees during the peak shipping period, primarily package handlers, drivers and driver-helpers.
UPS said back in September that up to 37 percent of those hired seasonally in 2015 now had permanent jobs with the company.
“For many it’s an opportunity to earn some extra cash for the holidays,” said UPS CEO David Abney, who started loading trucks at night in 1974 while in college. “But with many of our holiday hires getting permanent jobs with us, it can also be a gateway to a career.”
A UPS spokesperson told American Shipper the company is not making forecasts right now for the 2017 peak shipping season regarding expected daily volumes, or the number of seasonal employees it expects to hire.
From Nov. 19 through Dec. 23, UPS will also apply peak surcharges to large packages and packages over maximum size limits, which will be in addition to normal surcharges applicable to such packages.
UPS will also apply a peak surcharge on specific international air shipping lanes during certain periods of the year.
Meanwhile, effective June 26, UPS Freight rates will increase by 4.9 percent. The increase will apply to shipments rated on the current UPS Freight 560 (U.S. 48 contiguous states), 525 (to and from Canada), and 570/571 (to and from Mexico) tariffs.
The new rates can be viewed here starting June 26.
“The impact may vary based on specific lanes or shipment characteristics, such as weight or class,” UPS said.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now