We don’t need to tell you that shipping prices are on the rise. UPS’s latest price increases took effect on December 26, 2021 with changes to additional and value added charges, like address correction changes, additional handling fees, and large package surcharges. While rising costs may seem out of your control, they don’t have to be. At ShipSigma, we discover savings for our customers with AI-powered parcel invoice audit software.
The first step to saving is knowing what to look for. This article will break down everything you need to know about large package UPS surcharges and how to reduce them.
Shipping surcharges are additional fees that are added by your carrier to cover extra expenses involved with delivering your shipment. There are a variety of obstacles that can arise during the shipping process, and surcharges are the carrier’s way of staying profitable while still delivering your packages as timely as possible.
This article focuses primarily on UPS large package surcharges, but we advise that you become familiar with the following UPS surcharges as well:
Some surcharges, like those for additional handling and large packages overlap, but both shouldn’t be applied to the same package. Instead, UPS is entitled to charge the greater of the redundant surcharges. Still, you may end up being charged for the same violation with multiple surcharges. You can crack down on incorrect charges by conducting regular parcel invoice audits, made simple with ShipSigma’s AI-powered auditing software.
UPS takes both weight and size into account when applying a shipping rate. For packages with a large size-to-weight ratio, you may need to pay based on dimensional weight rather than your package’s actual weight.
To calculate the dimensional weight of your packages, use this formula:
Dimensional Weight = (Length X Width X Height) / Divisor
Measurements are in inches, and the divisor for UPS ground and express services is always 139. For example, if you had a package that weighed 30 lbs and was 10 inches wide by 20 inches tall by 30 inches long, the calculation would look like this:
Dimensional Weight = (10 X 20 X 30) / 139
The dimensional weight would be about 43.2 lbs, which is greater than the package’s actual weight of 30 lbs, so UPS would charge you based on the dimensional weight.
The UPS size calculator for determining large package surcharges uses the following equation for both domestic and international shipments:
Combined Size = Length (longest side of the package) + Girth [(2 X Width) + (2 X Height)]
Using the dimensions from our previous example, the calculation would look like this:
Combined Size = 30 + (2 X 10) + (2 X 20)
The combined size of this package would be 90 inches.
Large package surcharges apply for domestic packages that are 130 inches in combined size or 96 inches in length. For international packages, only the limitation of 130 inches in combined size applies.
Both domestic and international shipments of large packages use 90 lbs as the minimum billable weight. So, even if your package only weighs 30 lbs but it has a combined size of 145 inches, it would be charged as a 90 lb package (with a large package surplus charge in addition).
Packages that exceed the maximum size limits are subject to large package surcharges, which are (as of December 27, 2022) $165 per package for commercial shipments. Residential shipments receive a surcharge of $190 per package, while the international shipment surcharge is $170.
If a large package surcharge is applied to your package, you will not also be charged additional handling fees.
The UPS box size limit for accepting packages is either 150 pounds in actual weight, 108 inches in length, or 165 inches in combined weight. If any of these measurements are exceeded, UPS will not accept the package. Still, some packages that are over the maximum limits slip through the system, and a $1,150.00 surcharge per package is applied.
You worked hard to negotiate the best contract with your carrier. Still, unexpected—and sometimes incorrect—surcharges are adding to your already high shipping costs.
ShipSigma makes it easy to hold your carrier accountable. How do we do it? With our fully automated invoice auditing software. Here’s how it works:
Parcel invoice audits bring immediate savings, and when paired with carrier agreement negotiation, they can save your business an average of 25% on shipping costs. See it for yourself, and try ShipSigma for free.