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UPS rolls out peak delivery surcharges

High-volume customers to take the biggest hit

UPS announces peak season surcharges (Photo: Jim Allen/FreightWaves)

UPS Inc. has announced its peak holiday delivery surcharges, with levies on high-volume customers slightly above those of rival FedEx Corp.

For very high-volume shippers using UPS’ (NYSE: UPS) residential air services between Oct. 29 and Jan. 13, UPS will assess a per-package levy of $7.50, about a dime per package higher than similar FedEx (NYSE: FDX) services. For shippers using UPS’ ground residential and SurePost services, the latter  being managed in conjunction with the U.S. Postal Service, the per-package levy will be $6.40, about a nickel per piece above FedEx.

The surcharges will apply to customers that ship more than 20,000 residential and SurePost packages per week after October 2022. They will be based on how much peak volumes exceed volumes tendered per week during the month of June. If weekly volumes in September are less than 80% of the weekly volumes in June, then the volumes in September would be the threshold period.

Starting Oct. 1, parcels that require additional handling will be charged $6.90 per package. Oversize shipments will be charged a $74.90 levy and a $410 surcharge for shipments that are not designed to be conveyed by package delivery and that UPS would rather not accept.

 All of those fees run from Oct. 1 through Jan. 13.

F3: Future of Freight Festival


The second annual F3: Future of Freight Festival will be held in Chattanooga, “The Scenic City,” this November. F3 combines innovation and entertainment — featuring live demos, industry experts discussing freight market trends for 2024, afternoon networking events, and Grammy Award-winning musicians performing in the evenings amidst the cool Appalachian fall weather.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.