Due to the increased demand for last mile delivery from ecommerce retailers who have seen sales skyrocket as a result of COVID-19, UPS has announced they will be implementing additional surcharges based on volume and package size. Beginning May 31, 2020, UPS will institute these Peak Surcharges of $0.30 per package on Residential Ground and SurePost service, for customers whose weekly shipment volume has increased by 25,000 packages, or more, over their average weekly shipment for February 2020. This Peak Surcharge will be applicable to all packages shipped, not just the increased volume over the February 2020 weekly average.
UPS is also implementing a Peak Surcharge for Large Packages, which they define as packages whose length plus girth equal 130 inches or more or whose length exceeds 96 inches. Customers shipping more than 500 Large Packages per week will see a surcharge of $31.45 for each package over the 500 package threshold shipped during the week. This surcharge is applicable for packages with a domestic origin and destination.
These surcharges are in addition to the Peak Surcharges UPS imposed beginning April 12, 2020 for certain international shipments regardless of origin or destination. Like many other companies, UPS has seen dramatic increases in shipment volume, as well as operating costs, as a result of the dramatic shift to ecommerce caused by the closing of many traditional retail outlets at the recommendation of public health officials. These surcharges are part of UPS’s aggressive effort to pass these costs on to its customers.
As of right now, FedEx has not announced any changes to move in step with UPS but we are likely to hear from them in the coming days. So far, FedEx’s response has been to cap shipment volumes over the last week. Stay tuned for more information. You can find all of the information on the new UPS surcharges on their website (https://www.ups.com/us/en/shipping/zones-and-rates/peak-surcharges.page)