February 23, 2015
It’s a common pattern and we cover it each year: UPS increases its rates. For details on rate changes, see here.
Peak season surcharges added
This year, UPS has added a new surcharge that’s applicable in the peak season.
In other words, some customers may see a new shipping surcharge occur around the holidays. However, it is assumed that some exceptions will be made, based on the following information from UPS CEO, David Abney:
According to Abney, peak season surcharges on residential deliveries will be added “on a customer-segmented basis,” and “In some cases, these changes will be implemented over a multiyear period as contracts come due.” Thus, some UPS customers will see peak season surcharges earlier than others. However, it is important that all UPS customers are aware of the new fee, as it will eventually roll out to all accounts.
For background information on UPS’ decision to implement peak season surcharges, see here.
Will Shipwire customers be affected by UPS peak season surcharges?
Shipwire’s platform intelligently selects carriers based on the best rates and will automatically pick carriers that are cheaper, allowing Shipwire customers to mitigate UPS’ new peak season surcharges in 2015.
FedEx has not yet announced a peak season surcharge, but is expected to do so. USPS has no plans to implement a peak season surcharge.