UPS rolls out peak delivery surcharges

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.