UPS doubles down on new price hike ahead of ‘peak season’ – and it means Americans will pay more during the holidays

UPS customers will face two surcharges as the company grapples with a surge in volume.

UPS CEO Carol Tomé said this year's shorter holiday shipping window justifies the increase in costs.

Since Thanksgiving falls on November 28, customers will face the most condensed holiday shipping season since 2019.

“When you have that kind of volume flowing to your network, you actually have to charge to service them well, because you have to hire people and lease aircraft and delivery vehicles, so on and so forth,” Tomé said on an earnings call.

Bulky package fees will increase on September 29. Demand surcharges will then go into effect on October 27 for UPS Ground Residental, Air, and SurePost packages.

The $3.50 Additional Handling Surcharge will increase to $7.75 from September 29 through November 23, then rise again to $9.95 through December 28.

These charges are scheduled to end on January 18, but Tomé warned they may be here to stay.

“We think that the prices are going to stick because of what the environment is telling us from a demand perspective,” she said.

HIGHER PRICES

UPS confirmed to The U.S. Sun that customers who send over 20,000 packages will see further demand surcharges.

"A Demand Surcharge will apply to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost packages for customers who are billed for more than 20,000 packages during any week following October 2021," a UPS spokesperson said.

After passing that number, customers will be charged per package based on the service level.

Shippers using UPS SurePost or UPS Ground Residential will pay $1.25 charges per package after reaching 105% to 125% of the baseline volume.

Premium services like UPS Next Day Air Residential will pay an extra $2.25 per package.

Customers who ship internationally may be charged extra depending on the weight and size of the package.

Packages sent to the US from Australia, New Zealand, Vietnam, Japan, Korea, Malaysia, Thailand, Indonesia, Singapore, Philippines, and Taiwan receive a minimum of $0.65 per pound charge.

Shipments to the US from Mainland China, Hong Kong, and Macau cost an additional $1.22 per pound.

Price hikes to watch for

UPS shared the peak surcharge ranges per package for US Domestic, US import, and US export shipments:

Additional handling: $7.75 to $9.95 between September 29 and January 18.

Large package surcharge: $84.75 to $99 between September 29 and January 18.

Over maximum limits: $445 to $495 between September 29 and January 18.

A demand surcharge of 25 cents to $2 will also be in effect for UPS Ground Residential, Air, and SurePost packages between October 27 and January 18.

DRIVER DILEMMAS

In late July, UPS agreed to a five-year contract with shipment workers to keep drivers on the road.

UPS staffers, part of the International Brotherhood of Teamsters Union, threatened to strike if financial and safety revisions weren't made.

"Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers," Tomé said in a statement.

"This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong."

Target shoppers were shocked to see an added fee at self-checkout.

Diners spotted a "kitchen appreciation fee" on their receipt, and management wouldn't explain it.