UPS in an effort to continue to post very profitable financial results for their business, have recently announced the continuation of their Peak/Demand Surcharges across its domestic and international service lines. These surcharges were initially scheduled to expire on January 29, 2022, but have now been extended “Until Further Notice.” According to the UPS announcement, UPS “continues to provide essential service amid the ongoing coronavirus outbreak to support the needs of our customers. Our goal is to ensure businesses and customers are able to meet their shipping needs while demand has increased for shipping services.” So the real news here for parcel shippers is that traditional Peak Season Surcharges are no longer limited to just the holiday shipping season between November and January. We suspect UPS, as well as other parcel and freight carriers will continue to implement surcharges as they see fit as demand outpaces supply. It’s anyone’s guess when the pendulum will swing in the shipper’s favor. But one thing is for sure, it will at some time.
UPS Peak/Demand Surcharge Rate Chart can be found here for download: UPS-2022-PEAK-DEMAND-SURCHARGES
As always, ICC’s expert parcel shipping consultants are available to answer your questions or help you navigate these new changes.
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