UPS Increases SurePost Rates to Match USPS Pricing Changes

UPS Increases SurePost Rates to Match USPS Pricing Changes

UPS Surepost

Much of what has happened in the shipping world in the last 6 months could be called “unprecedented.” From monumental pricing changes to carrier capacity issues impacting shippers, the world of shipping has been turned on its head and shippers are still trying to catch up.

In Mid-August, another unprecedented announcement happened – USPS announced that, for the first time, it would be implementing a holiday surcharge.

The USPS announcement came as controversy over the new Postmaster General, Louis DeJoy, began to heat up. In addition, as the election season has begun, there has been much concern as to USPS’s ability to handle mail-in voting.

USPS Holiday Surcharge

Product Current Planned Increase
Parcel Select Destination
Delivery Unit (DDU)
Starts at $3.19 24 cents
Parcel Return Service Starts at $3.05 24 cents
Parcel Select Lightweight Starts at $1.81 24 cents
FCPS Commercial Starts at $2.74 25 cents
Priority Mail Commercial Starts at $7.02 40 cents
Parcel Select Ground Starts at $6.92 40 cents
Parcel Select DSCF Starts at $4.37 40 cents
Parcel Select DNDC Starts at $5.98 40 cents
Priority Mail Express Commercial Starts at $22.75 $1.50

Given that USPS acts as a last-mile carrier for other carriers, these prices were likely to be passed along to others.

It now seems that UPS is making the necessary adjustments to absorb the additional cost.

UPS Pricing Increases

While all the carriers have been steadily announcing increased pricing, UPS has stood out.

The reason is that a recent surcharge announcement prior to this adjustment will be applied in addition to existing surcharges based on the percentage increase over the average volume a shipper exceeded.

This is particularly burdensome for large shippers whose prices this holiday season will likely be exorbitant.

Peak Period: November 15, 2020, to January 16, 2021

Service Level 110%-200% of Feb Volume >200%-300% >300%
SurePost $1.00 per package $2.00 per package $3.00 per package
Ground Residential $1.00 per package $2.00 per package $3.00 per package
Next Day Air Residential $2.00 per package $3.00 per package $4.00 per package
All Other Air Residential $2.00 per package $3.00 per package $4.00 per package

In addition to what has already been announced, this week UPS stated that beginning October 18th, 2020 they will be increasing their UPS SurePost rates $0.24 per package.

The increase mirrors that of USPS and will go into effect around 1 month prior to their UPS’s Peak Surcharges.

The announcements of surcharges and pricing increases have become the “new normal” during the pandemic. And it doesn’t look like there will be a light at the end of the tunnel anytime soon.

It’s incumbent on shippers now to really invest in the tools needed to mitigate these cost increases and the uncertainties that have arisen due to COVID-19.

Visibility over supply chains via powerful analytics remains the best opportunity for shippers to gain network efficiencies, enabling delivery of shipments to be faster, at a lower cost with fewer exceptions.

To learn more about gaining visibility over supply chains in the time of COVID-19, check out Intelligent Audit’s recent eBook:

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Shipping During Covid

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  • Powerful Analytics Tools & Algorithms
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