When you look at your UPS bill for shipment, it can sometimes be difficult to tell what all the charges are for. It seems as though the list of fees is never-ending. These surcharges and accessorial fees add to the already skyrocketing shipping prices nowadays. According to Bloomberg, shipping rates are 25-50% higher than they were in 2020.
A parcel invoice audit can be a good way to avoid some of these UPS surcharges. ShipSigma can help with these audits, but we will discuss that more later. First, we will go through some of the extra charges you might be seeing on your bill, explain why you were charged for them, and discuss how those charges may lead to an extra audit fee.
Understanding what you are paying for will help you determine where you can cut costs on shipping.
UPS shipping charge corrections are fees that you have to pay any time you provide UPS with inaccurate or incomplete information. This fee specifically covers the cost to go back and fix the mistake(s). Below is a list of some of the most common shipping charge corrections.
UPS accessorial charges, similar to shipping charge corrections, are extra fees tacked onto your shipping costs. These occur when UPS has to do more than agreed upon to deliver your shipment. Below is a description of some of these charges.
Both shipping charge corrections and accessorial charges can lead to an audit fee. For a more extensive list of UPS surcharges, click here.
An audit fee is a charge that you may have to pay if UPS has to make too many adjustments or special accommodations to your shipments. You are at risk of receiving an audit fee if the average shipping charge correction during an invoice week is more than $5 per package subject to the shipping charge corrections. This fee doesn't apply to import shipments.
UPS will charge you either an extra $1 per package subject to a shipping charge correction or 6% of the total amount of the shipping charge corrections during the applicable invoice period, whichever is more expensive.
The easiest way to avoid shipping charge corrections and accessorial charges, and thus audit fees, is to double-check the information you provide to UPS when scheduling a shipment. Make sure you are measuring your packages' sizes and weights correctly using UPS's guidelines. Verify addresses using UPS's address validator tool. By verifying that everything is correct, you can avoid unnecessary spending on shipments.
You can correct mistakes on your end to avoid audit fees, but what do you do when UPS is in the wrong? ShipSigma can help with that. Once you connect your UPS account to our software, our AI-powered platform runs 50+ point parcel invoice audit and will then automatically submit claims for you when it catches a mistake. We not only help you catch invalid surcharges, though. We also help you recover fees from late deliveries or lost or damaged materials.
UPS charges either $1 per package subject to a shipping charge correction or 6% of the total shipping charge corrections during the applicable invoice period, whichever is greater. The audit fee applies when the average shipping charge correction during an invoice week exceeds $5 per package and does not apply to import shipments.
What triggers a UPS shipping charge correction?UPS issues shipping charge corrections when shipment information is inaccurate or incomplete, including incorrect package weight, an unverified or incomplete delivery address, or a residential address listed as commercial. Rounding weights up to the nearest whole pound and using UPS's address validator tool helps avoid these corrections.
What qualifies as an oversized package for UPS?UPS considers a package oversized if it weighs more than 150 pounds, exceeds 108 inches in length, or surpasses 165 inches combined in length and girth. Packages meeting any of these criteria are subject to an oversized or nonstandard dimensions surcharge.
Does UPS charge a fee for returning undeliverable packages?Yes. UPS charges an undeliverable return fee when a package cannot be delivered because the recipient refused it or because of circumstances outside UPS's control. The shipper is responsible for this return charge regardless of the reason for non-delivery.
How can I avoid UPS accessorial charges?Verify package dimensions and weights using UPS guidelines before tendering a shipment, and confirm delivery addresses with UPS's address validator tool. Ensuring all shipment information is accurate at the time of registration prevents most common shipping charge corrections and accessorial charges.