Talk about biting the hand that feeds you!
Starting Sunday, May 31, 2020, UPS is adding several new surcharges which they call a “Peak Surcharge;” a peak surcharge in the month of May! That makes absolutely no sense at all. The surcharges will apply to some of UPS’ best customers, (at least their best customers in terms of shipping volumes during the current Covid-19 Pandemic).
Here’s some more background on how the surcharges will be applied:
Should a UPS parcel shipper’s weekly package volume increase by more than 25,000 packages in any given week, compared to the shippers average daily volume from February, 2020, the new surcharges will be applied. These surcharges will apply to UPS Ground Residential Shipments as well as UPS Sure Post services. In addition, there is an additional Large Package Surcharge that will apply to any domestic package that is 130 inches in length and girth combined.
The Ground Residential and Sure Post Surcharge is $0.30 per package and the Large Package Surcharge (for all service levels), will be $31.45 per package.
Shipper’s whose businesses have flourished during this Covid-19 Pandemic have to feel like they’ve just been jilted! It feels like their being punished for helping UPS volumes remain stable while many other businesses have stopped shipping altogether. For those UPS shipper’s whose volumes have increased substantially and will be negatively impacted by these new surcharges, it may be time to take a look at their overall pricing with UPS to see if they can offset some of these new surcharges with rate reductions in other areas.
Read about UPS’ New Surcharges on Supply Chain Dive
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