UPS raises large parcel and domestic surcharges to prep for peak

Peak season 2021 is shaping up to look a lot like 2020 — but even more expensive for many shippers.

Last year’s surcharges for Air, Ground and SurePost ranged between $1 and $4 per parcel, depending on the volume against a February 2020 benchmark. Those fees are as high as $6.15 this year. Large parcel surcharges increased to $50 last October and will be $60 this October.

The peak surcharges for 2021 particularly affect high-volume shippers and those who’ve experienced substantial demand growth over the last year.

In peak season 2020, UPS segmented shippers into three categories for those that shipped more than 25,000 parcels weekly during peak:

1. Shippers who sent 110% to 200% of their February 2020 volume
2. Shippers who sent more than 200% to 300% of their February 2020 volume
3. Shippers who sent more than 300% of their February 2020 volume

But this year, there are five tiers, and the surcharges tick up in line with the volume. SurePost and Ground Residential surcharges are $5.15 per package, and Air Residential is $6.15, for shippers with volumes more than 500% above last February. And such an increase in volume is not unheard of, as retail and e-commerce sales have boomed, and supply chains attempt to build up inventory to keep pace with demand.

Peak season 2021 is shaping up to look a lot like 2020 — but even more expensive for many shippers.

Last year’s surcharges for Air, Ground and SurePost ranged between $1 and $4 per parcel, depending on the volume against a February 2020 benchmark. Those fees are as high as $6.15 this year. Large parcel surcharges increased to $50 last October and will be $60 this October.

The peak surcharges for 2021 particularly affect high-volume shippers and those who’ve experienced substantial demand growth over the last year.

In peak season 2020, UPS segmented shippers into three categories for those that shipped more than 25,000 parcels weekly during peak:

1. Shippers who sent 110% to 200% of their February 2020 volume
2. Shippers who sent more than 200% to 300% of their February 2020 volume
3. Shippers who sent more than 300% of their February 2020 volume

But this year, there are five tiers, and the surcharges tick up in line with the volume. SurePost and Ground Residential surcharges are $5.15 per package, and Air Residential is $6.15, for shippers with volumes more than 500% above last February. And such an increase in volume is not unheard of, as retail and e-commerce sales have boomed, and supply chains attempt to build up inventory to keep pace with demand.