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How will the UPS rate increases affect your holiday online shopping?

How will the UPS rate increases affect your holiday online shopping?

With the holidays fast approaching, and e-commerce becoming a more dominant gift-outlet, there have been some changes in package delivery. Whether you choose them or not, UPS is a popular shipping company for online businesses. But did you know that this year, the company is adding new surcharges and increasing rates? Here’s what’s going on.

What exactly are the new UPS rates?

On June 19, 2017, UPS introduced the Peak Surcharges, which are applicable during defined periods, depending on service level and package characteristics. Basically, this means that during high traffic times of the year, UPS will be changing its rates to meet the increased demand on their services.

In addition to the Peak Surcharges, UPS has implemented Delivery and Extended Area Surcharges. These surcharges are in effect in areas that are less populated or accessible, both domestically and internationally. These domestic and international areas carry higher operating costs, so the surcharges have been modified to more accurately reflect the cost of providing service to these areas.

UPS is adding these additional surcharges to keep up with the increased demand for their delivery services during the holiday season. Companies, like UPS, are forced to make more investments when demand for their services increase. As a result, these surcharges are intended to help fund the expansions and upkeep needed to meet the higher shipping demands.

When can you expect these rates?

The idea behind Peak Surcharges is that they take effect when there is a high demand for UPS’ services. As e-commerce and online gift purchases increase this holiday season, you will also see the addition of Peak Surcharges to those purchases.

According to the UPS Zones and Rates web page, these Peak Surcharges will primarily impact UPS Ground shipments starting on November 19. One of the highest trafficked times of the year are the November and December holiday seasons, so the charges will be applied throughout those months.

Similarly, the Delivery and Extended Area Surcharges were enacted on December 26, 2016. Unlike the Peak Surcharges, these rates are in effect throughout the entire year. However, this is the first holiday season that they will be in effect.

How do you avoid these surcharges?

The best advice we can give you to beat the additional charges this holiday season is to order earlier. The fourth quarter is always the busiest for deliveries every year but these new surcharges are even more of a reason to plan ahead. This is particularly true since e-commerce is getting bigger every year, so fourth quarter deliveries are getting more hectic.

So how will these additional charges affect your holiday online shopping plans? Visit On Time Logistics blog to learn more about industry news and the ever-changing e-commerce.

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