UPS: No Peak Season Residential Surcharge, But Others Apply

UPS announced it will not add a residential delivery surcharge during peak holiday season this year, unlike in the past two years, but it will be adding surcharges for larger packages and those requiring additional handling.

Packages requiring additional handling will be hit with a peak surcharge of $3.60 by UPS between Nov. 24 and Jan. 4. The additional handling definition surcharge applies if:

  • The package’s longest side exceeds 48 inches, or second-longest side exceeds 30 inches
  • The weight is greater than 70 lbs.
  • It’s encased in metal, wood, plastic or polystyrene
  • It’s a cylindrical item (barrel, drum, pail, tire, etc.) not fully encased in a corrugated box or container
  • The average weight of packages in a shipment is greater than 70 lbs., and the weight for each package is not specified (source document, automated shipping system)

The large package surcharge of $31.45 applies to packages shipped via UPS between Oct. 1 and Jan. 4 whose combined length, width and depth are between 130 inches and 165 inches, or its length exceeds 96 inches.

The over-maximum surcharge of $250 per package applies to items shipped by UPS between Oct. 1 and Jan. 4 whose length exceeds 108 inches, or have a combined length/width/girth greater than 165.

UPS said it expects to again handle a record number of packages during this peak holiday season, coming after record volume of 800 million packages last year. Between 2018 and 2019 UPS has spent millions on new automated sortation systems at its super hubs that can handle an additional 700,000 packages per hour. Over 75% of holiday capacity is expected to flow through the automated facilities.

“We are continuing to build momentum as our transformation matures and we enhance the company’s operating efficiency,” said David Abney, UPS Chairman and CEO in a release.

UPS delivered an estimated 98.3% of it 2018 holiday packages on time, according to data from Shipmatrix, up from 95.3% in the prior year. This was slightly better than FedEx (97.6%) but just below the U.S. Postal Service (98.8%).

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