UPS introduces peak season surcharges

This peak season, UPS is to introduce a charge during selected weeks in November and December for US residential, large packages and packages that exceed maximum limits.

According to UPS, the new charges will help offset some of the additional expenses tha they incur when there are significant volume surges.

“We’re focused on helping our customers achieve success during some of their most important selling seasons,” said Alan Gershenhorn, UPS Chief Commercial Officer. “To meet their requirements, UPS flexes its delivery network to process near double our already massive regular daily volume, and that creates exceptional demands.”

UPS have published a chart on their website that summarises the additional peak charges. While there will be some additional charges for residential services in November (around Black Friday and Cyber Monday) the peak rates of between 27 cents and 91 cents a package will only affect the busiest week between 17-23 December.

The logistics and parcel delivery firm will also apply a peak surcharge on certain international air shipping lanes at certain periods every year.

During the 2016 holiday season, UPS average daily volume exceeded 30 million packages on more than half of the available shipping days.

While there is a lot of competition for parcel delivery in what is a very open market, it seems that the big guys can have too much of a good thing. Time will tell whether these relatively small increases in price impact UPS sales…  
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