UPS Rolls Out Additional Peak Surcharges

UPS Rolls Out Additional Peak Surcharges

UPS fuel surcharges

As the COVID-19 pandemic continues, carriers have been adding additional surcharges in order to cope.

For example, FedEx announced two surcharge increases – in April and May.

UPS made COVID-related changes to their surcharges, specifically as it relates to APAC.

Now, however, UPS has announced additional changes to its Peak Surcharges. These changes will have significant impacts for many shippers.

UPS Peak Surcharge Changes

According to an update put out by UPS:

Effective May 31, 2020 until further notice, one or more Peak Surcharges will apply to certain U.S. domestic packages.

The most recent updates are specific to UPS® Ground Residential and UPS SurePost® Packages and Large Packages. These per-shipment surcharges are quite large and shippers should definitely take note.

Below is a breakdown of these changes.

UPS® Ground Residential and SurePost®

Service Level Peak Surcharge (From May 31 Until Further Notice)
UPS® Ground Residential $0.30 per package
UPS® SurePost $0.30 per package

U.S. origins and destinations, for qualifying customers whose combined volume of Ground Residential and SurePost packages during the prior week exceeded the customer’s average weekly volume for February by more than 25,000 packages.

Large Packages

Service Level Peak Surcharge (From May 31 Until Further Notice)
All Service Levels $31.45 per package

Applies to shippers that shipped more than 500 Large Packages during the prior week, for all U.S. origins and destinations (“Initial Threshold”).

Large Packages are defined as packages with length (longest side of the package) plus girth [(2 x width) + (2 x height)] combined exceeding 130 inches, or with length exceeding 96 inches.

Once the Initial Threshold has been met in any week, the Peak Surcharge will apply to all Large Package shipments at any time regardless of volume in the amounts set forth in the chart below to the indicated service levels and during the specified.

Previously Announced Surcharge Changes

Prior to this most recent announcement, UPS increased Peak Surcharges with a focus on the APAC region.

Those changes are as follows:

Shipments from China Mainland to the U.S.

Service Level April 12, 2020 to May 23, 2020 May 24, 2020 until further notice
UPS Worldwide Express Plus® $0.45 per lb $0.79 per lb.
UPS Worldwide Express® $0.45 per lb $0.79 per lb.
UPS Worldwide Saver® $0.45 per lb $0.79 per lb.
UPS Worldwide Expedited® $0.41 per lb. $0.75 per lb.
UPS Worldwide Express Freight® $1.25 per lb $1.81 per lb.
UPS Worldwide Express Freight® Midday $1.25 per lb $1.81 per lb.

Shipments from Hong Kong SAR to the U.S.

Service Level April 12, 2020 to May 23, 2020 May 24, 2020 until further notice
UPS Worldwide Express Plus® $0.45 per lb $0.57 per lb.
UPS Worldwide Express® $0.45 per lb $0.57 per lb.
UPS Worldwide Saver® $0.45 per lb $0.57 per lb.
UPS Worldwide Expedited® $0.41 per lb. $0.52 per lb
UPS Worldwide Express Freight® $1.25 per lb $1.36 per lb.
UPS Worldwide Express Freight® Midday $1.25 per lb $1.36 per lb

Intelligent Audit provides its clients with a global, all-mode transportation audit, recovery, freight payment, and business intelligence reporting partner.

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