New UPS Fees Come in Response to More Demand

New UPS Fees Come in Response to More Demand

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E-commerce continues its march toward overall retail dominance. More major brands are turning to e-commerce to expand their marketplaces and add revenue. According to Total Retail, “A shift in digital presence meant sellers also had to pivot their marketing and advertising strategies to stand out in a crowded online space. Data shows that 80 percent of major purchases start with online research.” However, that initial online connection immediately increases the chances that the customer will make a purchase, which again extends the demands for transportation and shipping. In response to the continued demand for more, it comes as no surprise that new UPS fees are taking effect. Shippers need to understand these fees, also available in full detail here, and how they emphasize the value of a single source of truth for shipping data. 

What Are the New UPS Fees?

The new UPS fees replace peak and demand surcharges on shipments from the APAC region to Canada and the U.S. Further, such UPS fees and surcharges will help alleviate some of the higher costs associated with domestic and northbound transportation throughout the remainder of the winter. The move will also help offset the higher costs coming from the driver shortage and more e-commerce growth. Still, shippers that do not gain supply chain insight and understanding into their new costs will face even more uncertainty. To help avoid that problem, here is the full breakdown of the new UPS fees. 

Domestic Surcharges

  • Canada Domestic UPS Standard®, UPS Standard to the U.S., and UPS Trade Direct® Northbound – USD 0.30 (CAD 0.42) surcharge will be effective January 16, 2022.

Shipments From China Mainland, Hong Kong SAR, and Macau SAR to Canada

Effective until January 29, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 3.25 (CAD 4.31) / kg or USD 1.47 (CAD 1.95) / lb, effective until January 29, 2022. 
  • UPS Worldwide Express Freight® & UPS Worldwide Express Freight®, Midday – USD 5 (CAD 6.63) / kg or USD 2.27 (CAD 3.01) / lb, effective until January 29, 2022. 

Effective January 30, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 2.75 (CAD 3.65) / kg or USD 1.25 (CAD 1.66) / lb, effective January 30, 2022. 
  • UPS Worldwide Express Freight® and UPS Worldwide Express Freight®, Midday – USD 4.25 (CAD 5.64) / kg or USD 2.27 (CAD 3.01) / lb, effective January 30, 2022. 

Shipments From “South Korea, Japan, Vietnam, Malaysia, Thailand, Indonesia, Singapore, Philippines, Taiwan, Australia, and New Zealand to Canada”

Effective until January 29, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 1.25 (CAD 1.66) / kg or USD 0.57 (CAD 0.76) / lb.
  • UPS Worldwide Express Freight® & UPS Worldwide Express Freight®, Midday – USD 5 (CAD 6.63) / kg or USD 2.27 (CAD 3.01) / lb. 

Effective January 30, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 1.00 (CAD 1.50) / kg or USD 0.45 (CAD 0.60) / lb.
  • UPS Worldwide Express Freight® & UPS Worldwide Express Freight®, Midday – USD 2.50 (CAD 3.32) / kg or USD 1.13 (CAD 1.50) / lb.

Shipments From India to Canada

Effective until January 29, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 0.12 (CAD 0.16) / kg or USD 0.05 (CAD 0.07) / lb.
  • UPS Worldwide Express Freight® & UPS Worldwide Express Freight®, Midday – USD 0.37 (CAD 0.49) / kg or USD 0.17 (CAD 0.23) / lb

Effective January 30, 2022, the following UPS fees apply:

  • UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Expedited® – USD 0.75 (CAD 1.00) / kg or USD 0.34 (CAD 0.45) / lb.
  • UPS Worldwide Express Freight® & UPS Worldwide Express Freight®, Midday – USD 1.25 (CAD 1.66) / kg or USD 0.57 (CAD 0.76) / lb.

What Should Shippers Do About New UPS Fees?

Shipping providers like UPS will continue introducing new, detailed fees as demands remain high, and shippers need to watch their shipping spend more closely than ever. This means closely examining all invoices for unexpected charges, negotiating better rates with carriers, and considering alternate shipping providers if necessary. Shippers can avoid unnecessary overspending and keep their business running smoothly.by being proactive and vigilant about shipping costs with a comprehensive view of freight audit data.

Furthermore, aggregating data from all carriers, modes, service levels, and O-D pairs will help shippers stay on top of changes and know when to leverage alternate fulfillment strategies. As UPS introduces new international surcharges, FedEx and DHL will likely follow suit.

The Big Picture: More Fees Will Come; Shippers Must Stay Vigilant

These surcharges can be challenging to understand. And the new UPS fee structure will indeed be a source of frustration for many small businesses as it has increased the cost to ship packages. The lack of transparency into what drives pricing is likely part of the problem, leading to confusion and resentment over shipping rates. However, actionable data insights and knowing what costs are occurring and how to drive them into retreat through insight can help. Speak with an expert in freight audit data and carrier-initiated surcharges, including these new UPS fees, by connecting with Intelligent Audit now.

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