How Much Is UPS Peak Surcharge for 2023-2024?

Written by Chase Flashman | Oct 5, 2023 7:50:09 PM

Curious about the cost and effects of UPS peak season surcharges? Asking yourself, “How much is UPS peak surcharge?” In this blog, we'll dive into the details and breakdowns to help you understand and manage these additional fees effectively.

What Is a Peak Surcharge?

A peak season surcharge is a fee that a carrier charges shippers during ‘peak’ shipping seasons of the year. During these periods, there is a remarkable increase in shipping demand, and carriers impose surcharges to offset the increased costs and meet customer needs. These peak seasons typically include major shopping events like the holiday shopping season, as well as other periods of heightened demand, such as back-to-school and product launches.

Apart from the transportation sector, peak fees also exist in industries like entertainment and hospitality.

What Is UPS Peak Season Surcharge?

In 2022, UPS renamed “peak season surcharges” to “demand surcharges.” While the name may have changed, the basic idea of a demand surcharge is the same. These are additional fees that UPS adds to shipments during specific ‘demand periods’, and they apply based on various aspects like where the package is coming from, where it's going, and the level of service chosen. The exact amounts of these surcharges are determined and set by UPS.

How Can I Avoid UPS Peak Season Surcharges?

Without proper planning, surcharges can significantly inflate your shipping costs. Follow these tips to minimize their impact on your shipping activities with UPS.

Plan Shipments Ahead of Time: By avoiding last-minute rush orders, you can reduce documentation errors and choose the most cost-effective shipping options, potentially reducing surcharges.
Optimize Packaging: Properly measure and package your shipments to avoid additional surcharges related to oversized or irregularly shaped packages. Use UPS packaging guidelines to ensure your parcels meet their requirements.
Implement Address Validation: To avoid address correction and redelivery surcharges, ensure that the addresses you're shipping to are accurate and complete. You can use tools like UPS Worldship to perform address verification and classification automatically.
Monitor UPS Announcements: Keep an eye on UPS announcements and updates regarding surcharges to be aware of price and policy changes that may affect your rates.
Perform audits on your shipping: Conduct shipping audits either independently or with a trusted shipping account audit company. Analyzing your shipping data helps uncover potential refunds, discounts, and areas of unnecessary overpayment for shipping and surcharges.

How Much Are UPS Peak Surcharges?

You can find UPS’ peak/demand surcharges for 2023 in the UPS additional charges tables below. Note that these are for domestic shipments. For international UPS surcharges 2023 and full details on the UPS peak surcharge 2023 schedule, check out the UPS Demand Surcharges page.

A. Demand Surcharge – Applied to Additional Handling and Large Packages

Surcharge	Current Surcharge amount (Jan. 15, 2023–Sep. 30, 2023)	New Surcharge amount (Oct. 1, 2023–Jan. 13, 2024)	Percentage % Increase
Additional Handling	$3.50 per package	$6.90 per package	97.14%
Large Package Surcharge	$40.00 per package	$74.90 per package	87.25%
Over Maximum Limits	$0.00 per package	$410.00 per package	–

B. Demand Surcharge – Applied to UPS Air Residential, UPS Ground Residential, and UPS SurePost Packages

This UPS demand surcharge 2023 will be levied on select packages within UPS Air Residential, UPS Ground Residential, and UPS SurePost services. The surcharge rates outlined in the tables below will be applied weekly for each package that exceeds 105% of the Baseline weekly average volume for the respective service level during the specified Demand Period.

Current Rates

Applicable Window: January 15, 2023 to October 28, 2023

Qualification Criteria: Customers who are charged for more than 20,000 packages during any week following October 2021

Service Level	>105% to 125% of Baseline Volume	>125% to 150% of Baseline Volume	>150% of Baseline Volume
UPS SurePost	$0.40 per package	$0.50 per package	$0.60 per package
UPS Ground Residential	$0.40 per package	$0.50 per package	$0.60 per package
UPS Next Day Air Residential	$0.40 per package	$0.50 per package	$0.60 per package
All Other UPS Air Residential	$0.40 per package	$0.50 per package	$0.60 per package

Upcoming Rates

Applicable Window: October 29, 2023 to January 13, 2024

Qualification Criteria: Customers who are charged for more than 20,000 packages during any week following October 2022

Service Level	>105% to 125% of Baseline Volume	>125% to 150% of Baseline Volume	>150% to 200% of Baseline Volume	>200% to 300% of Baseline Volume	>300% to 400% of Baseline Volume	>400% of Baseline Volume
UPS SurePost	$1.35 per package	$1.85 per package	$2.15 per package	$2.60 per package	$4.45 per package	$6.40 per package
UPS Ground Residential	$1.35 per package	$1.85 per package	$2.15 per package	$2.60 per package	$4.45 per package	$6.40 per package
UPS Next Day Air Residential	$2.40 per package	$2.90 per package	$3.20 per package	$3.65 per package	$5.50 per package	$7.50 per package
All Other UPS Air Residential	$2.40 per package	$2.90 per package	$3.20 per package	$3.65 per package	$5.50 per package	$7.50 per package

How Long Does UPS Peak Season Last?

Similar to FedEx, UPS’ peak season generally lasts from October to early January. During this period, they increase their demand surcharge rates. While UPS does apply demand surcharges between January and September, it's important to note that these surcharges are significantly lower during this time.

What Are UPS Surcharges?

UPS surcharges are additional fees that UPS may impose on certain shipments or under specific conditions in a bid to cover additional costs or address specific challenges encountered during the shipping process. These surcharges are applied in addition to the standard shipping rates.

Some common UPS surcharges include:

Residential Surcharge: UPS imposes this fee due to the additional handling requirements and potential navigational difficulties associated with residential deliveries.
Delivery Area Surcharge: UPS may charge a fee for deliveries going to remote or less accessible areas to compensate for the extra effort needed to reach these locations.
Fuel Surcharge: This is a common surcharge among many carriers that aims to offset the effects of fluctuating fuel prices during the year.
Over Maximum Size: If a package exceeds UPS size and weight limits, it may be subject to this surcharge.
Large Package Surcharge: This surcharge applies to shipments that, while not exceeding maximum size limits, are categorized as 'large' due to their size, distinct from 'Over Maximum Size' surcharge, which is reserved for parcels that surpass UPS size limits.
Incorrect Weight: This fee is charged when the weight of a package is found to be different from what was declared at the time of dispatch.
Additional Handling Surcharge: This applies to packages that require special handling due to size, weight, or item characteristics that make them more challenging to process.
Peak Season Surcharge: During peak holiday shipping periods, UPS may introduce surcharges to manage the increased demand and operational challenges.
Address Correction Surcharge: If an incorrect or incomplete address requires correction by UPS, a surcharge may be applied to cover the administrative costs.

These are a few of the UPS surcharges. For tips on how to minimize their impact, check out their guide on how to avoid shipping charge corrections.

How ShipSigma Can Help Manage UPS Peak Demand Surcharges

With 300+ happy customers (average of 25% cost reduction) and a staff with over 250 years of combined industry experience, you can be sure that you have the right contract negotiating partner in ShipSigma. Our technology-driven approach allows you to secure better small parcel rates while retaining your preferred carrier and service level.

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