UPS Releases Peak Season Surcharge for 2022: Large Shippers Expected to Pay More

UPS Releases Peak Season Surcharge for 2022: Large Shippers Expected to Pay More

peak_season_surcharge_for_2022

FedEx kicked off the holiday season with announcements of peak surcharges for additional handling and oversized packages effective September 5th. UPS will follow on October 2nd with its peak holiday season surcharges for additional handling, large packages, and over-maximum packages.

UPS has maintained an ongoing peak surcharge for additional handling and large packages, with the current adjustment effective since January 16th.

For the holiday season, effective October 2nd, additional handling will increase from $3.50 per package to $6.50 per package, while the large package surcharge will increase from $40 per package to $70 per package. 

There will also be a $400 peak surcharge for over-maximum packages.

Compared to the 2021 holiday peak season, the 2022 additional handling peak surcharge is 8% higher, the large package surcharge is 17% higher, and the over-maximum is up a whopping 60%.

Meanwhile, peak surcharges for UPS Ground Residential and SurePost implemented on January 16th, will remain in effect until October 29th. These surcharges—30 cents per package—will apply to those shippers with volumes greater than 110% of their February 2020 volume. 

Large Shippers Take a Hit

After October 29th, peak surcharges for SurePost and Residential (Ground, Next Day Air, and all other Air Residential) will increase based on volumes. The higher the volumes, the higher the surcharges.

For example, the peak surcharges will apply to shippers billed for more than 20,000 packages during any week following October 2021.

Surcharge amounts will apply weekly to each package over 105% of the baseline weekly average volume for each service level during the specified period. 

The baseline volume established is the shippers’ average weekly volume for June 2022 (June 5, 2022, through July 2, 2022). In comparison, the 2021 baseline volume was February 2020. 

The highest surcharge amount applicable to the volume over the baseline weekly average volume in a given week will apply to all packages over 105% of the baseline weekly average volume within each service level.

UPS Peak Season Surcharges for 2022

According to UPS, “A Peak/Demand Surcharge will apply to all packages shipped Canada domestic UPS Standard® and UPS Standard® to the U.S., including UPS Trade Direct® Northbound. The Demand Surcharge will apply in the amounts set forth below to the indicated service levels during the specified Demand Period.” The following chart breaks down the Domestic and U.S. UPS Standard® Packages.

Peak/Demand Period 

NOTE: inclusive of starting and ending dates and Applicable Peak/Demand Surcharge ($/package)

Service LevelsJanuary 16, 2022, until further notice
Canada Domestic UPS Standard®USD $0.30 per package / CAD $0.42 per package
UPS Standard® to the U.S.USD $0.30 per package / CAD $0.42 per package
UPS Trade Direct® NorthboundUSD $0.30 per package / CAD $0.42 per package

(DOK NOTE: if have a chart above for Canada, let’s add a chart below showing the peak charge % table for excess volume)

Compared to the 2021 holiday peak season, peak surcharges will start at 105% this holiday season vs. 110% in 2021. But, SurePost and Ground Residential will see up to a 13% increase from last year’s holiday season, while UPS Next Day or Other Air Residential will see up to a 16% increase.

UPS holiday peak surcharges will remain effective until January 14th to handle most seasonal returns. 

Peak/Demand Surcharge from China Mainland, Hong Kong SAR, and Macau SAR to Canada1

As updated on August 10th and covered in our previous post, UPS has also updated their peak season demand surcharges for packages originating from China Mainland, Hong Kong SAR, and Macau SAR to Canada.

Large Shippers Turn to Data & Analytics to Manage Transportation Spend

Buckle up for yet another expensive shipping holiday season. Intelligent Audit has your back. We ingest, normalize and analyze shipping data to uncover any spend spike anomalies and correct them. Learn more about how we saved a high-end fashion retailer (replace “high-end fashion retailer” with the word client, since technology, healthcare, manufacturing, etc. prospects will be reading this, let’s make the message more inclusive) nearly $50 million using our freight audit & payment and business intelligence and analytics suite.

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