UPS Adds New Fee For Holiday Season Deliveries

For UPS "Next day Air Early", "Next Day Air" and "Next Day Air Saver" the peak surcharge dates are December 17 through 23 with an increase of $.81.

In a first for the delivery company, UPS will charge "Peak" rates during certain periods: Between Nov. 19 and December 2., it'll cost $0.27 per package for all ground shipments sent to residential addresses.

United Parcel Service is instituting per-package surcharges for the holiday season to help cover the cost of hiring additional workers and renting extra planes and trucks. But this is the first time UPS is spelling out specific surcharges for the holiday period.

The "peak surcharges" are expected to be in effect during November and December. The company has to manage the huge surge in delivery volume during the holidays.

The world's largest shipping company announced Monday, June 19th just how much it plans to hike prices during the holiday season.

The peak surcharges go away for the next two weeks, when shoppers typically take a pause, but return for the final holiday rush. All residential packages sent by air or ground will incur a surcharge in the week ended December 23. To handle that volume, UPS hired about 95,000 seasonal employees to handle the peak shipping period. Using that number as the basis, the 27 cent surcharge represents an increase of about 3.4 percent.

"We're focused on helping our customers achieve success during some of their most important selling seasons", Alan Gershenhorn, UPS Chief Commercial Officer, said in a press release.

The United Parcel Service Inc. almost doubles its volume in November and December, and in order to handle the extra business, the company has to hire tens of thousands of temporary workers and acquire more trucks and jets via expensive short-term leases.

  • Zachary Reyes