September 1, 2022 •ShipSigma
UPS announced its peak holiday surcharges at end of August. The highlights include a $0.10 increase to the baseline from 2021 for ground, air, and SurePost, a more relevant baseline period (June 5, 2022 - July 2, 2022), adjusted surcharge tiers, and a decreased weekly volume threshold. So, what does that mean for you?
AHS, Large Package and Over Maximum
Effective October 2, 2022:
- Additional Handling will see an 85% increase from its current prices and an 8% increase from last year's peak.
- The Large Package Surcharge will see a 75% increase from its current prices and a 17% increase from last year's peak.
- Over Maximum Limits, currently no charge, will be $400, up 60% from last year's peak.
|
Surcharge name |
Applicable services |
2022 Surcharge |
2021 Surcharge |
|
Peak — Additional Handling Surcharge |
U.S. domestic, U.S. import, and U.S. export shipments for qualifying customers |
$6.50 per package Effective Oct. 2, 2022–Jan. 14, 2023 |
$6.00 per package |
|
Peak — Large Package Charge |
U.S. domestic, U.S. import, and U.S. export shipments |
$70.00 per package Effective Oct. 2, 2022–Jan. 14, 2023 |
60.00 per package |
|
Peak — Over Maximum Limits |
U.S. domestic, U.S. import, and U.S. export shipments |
$400.00 per package Effective Oct. 2, 2022–Jan. 14, 2023 |
$250.00 per package |
Ground/Air Residential and SurePost
Effective October 30, 2022:
"A Peak surcharge will apply to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost packages, for customers who are billed for more than 20,000 packages during any week following October 2021."
The Peak/Demand Surcharge amounts below will apply on a weekly basis to each package over 105% of the Baseline weekly average volume for each service level, during the specified Peak/Demand Period.
The "baseline" volume is the customer's average weekly volume for each service level for June 2022. However, if the customer's average weekly volume during September 2022 was less than 80% of June 2022, then UPS, at its discretion, can use the lower weekly average volume from September to determine the baseline.
SurePost & Ground Residential
$1.25 per package to $6.00 per package ($0.10-$0.85 more than 2021)
Air Residential
$2.25 per package to $7.00 per package ($0.10-$0.85 more than 2021)
Differences from 2021:
- Peak Surcharge will start at 105% this holiday season vs. 110% from 2021
- UPS SurePost and Ground Residential will see up to a 13% increase from last year's holiday peak season.
- UPS Next Day or Other Air Residential will see up to a 16% increase from last year's holiday peak season.
For more information visit UPS.
ShipSigma Saves You Money
These price hikes can be detrimental to a business if they are not prepared. If you have any questions regarding your shipping prices, your carrier agreement, or how you can find shipping savings to put back into your budget, please reach out to us at ShipSigma to perform a free impact analysis. We would love to help.
Frequently Asked Questions About UPS Peak Holiday Surcharges
When do UPS peak holiday surcharges take effect in 2022?
The 2022 UPS peak surcharges for Additional Handling, Large Package, and Over Maximum Limits begin October 2, 2022, and run through January 14, 2023. Ground and Air Residential peak surcharges start October 30, 2022.
How does UPS calculate the baseline volume for peak surcharges?
UPS uses a customer's average weekly volume for each service level during June 2022 as the baseline. If September 2022 weekly volume was less than 80% of the June 2022 average, UPS has discretion to apply the lower September figure as the baseline.
What is the weekly volume threshold that triggers UPS peak residential surcharges?
Peak surcharges apply to customers billed for more than 20,000 packages in any week after October 2021. The surcharge applies to each package exceeding 105% of the customer's baseline weekly average volume for the applicable service level.
How much is the UPS Large Package Surcharge during the 2022 peak season?
The UPS Large Package Surcharge during the 2022 peak season is $70.00 per package, effective October 2, 2022, through January 14, 2023. This represents a 75% increase from current prices and a 17% increase from the 2021 peak surcharge of $60.00 per package.
How do the UPS 2022 peak surcharges compare to 2021 levels?
The 2022 UPS peak surcharges are higher across every category compared to 2021. The Large Package Surcharge rose 17% to $70.00, the Additional Handling Surcharge rose 8% to $6.50, and the Over Maximum Limits charge rose 60% to $400.00 per package. Ground Residential and SurePost rates increased up to 13%, while Air Residential rates increased up to 16%.