Delivery Fee Hike Takes Effect on December 23 as Part of Operator's Planned Adjustments
UPS plans to increase rates by 5.9% at the end of the peak season.
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The rate hike will take effect on December 23 and is one of several adjustments planned by the carrier over the next few months.
Published on October 9, 2024
Max Garland
Senior Reporter
According to UPS’s official website, starting from December 23, UPS will increase its average rates for ground, air, and international shipping services by 5.9%.
“This helps support our ongoing expansion and enhancement of capabilities while maintaining the high level of service you expect from UPS,” the company stated. “A more detailed rate preview will be provided later.”
The planned increase matches FedEx’s 5.9% rate adjustment but will take place two weeks earlier, at the tail end of the holiday shipping peak season. Last year, UPS’s rate changes took effect on December 26.
“This is an earlier effective date this year, positioning UPS in a favorable position during the 2024 peak season,” said Jack McCrum, Director of Optimization and Analytics at Reveel, in a LinkedIn post.
The actual impact on each UPS customer will depend on factors such as package weight, shipping distance, services used, and other characteristics. In the current environment of weak demand, ongoing discount programs from both UPS and FedEx may mitigate some impacts for shippers.
On October 21, UPS will revise its list of postal codes subject to additional surcharges, among other adjustments. The company did not specify which regions would be affected, but earlier this year, UPS implemented similar measures, adding surcharges for several major city postal codes.
Further UPS pricing changes are scheduled for January 27, 2025. At that time, the carrier will adjust its calculation of dimensional weight surcharges based on length, weight, or cubic volume for large packages. Additionally, extra handling fees will start to consider cubic volume rather than “length plus girth,” according to UPS.
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Source: Supply Chain Dive
