UPS Peak Season Surcharges
Jun 29, 2017
Nobody likes being caught by surprise when it involves paying extra and hurting your bottom line. That’s why we wanted to make sure you’re aware of the holiday peak season surcharges that UPS announced last week. Basically, they'll be adding 27 cents to each ground package and up to 97 cents for air packages during peak times.
Why is UPS doing this? First, they are able to justify the costs by explaining that they face higher expenses to handle their peak season volume. Second, they are doing it because they can. UPS knows that parcel shippers don't have a lot of options, especially during the holiday season.
If you’re thinking that you’re off the hook because you don’t use UPS much or at all, think again. This is part of a larger effort by carriers to get a better handle on their cost structure so that their rates will reflect their costs to service your account. And if you don't understand how this impacts your carrier negotiations, you'll be caught flat footed when the carriers issue their GRI's (General Rate Increases).
That’s why we have encouraged companies to get ahead of the curve and assess whether now is the right time to conduct a sourcing event with TranzAct. We have helped companies reduce their costs for parcel shipping as well as LTL and Truckload moves.
We’re sharing all of this with you because we’re on your team, we're here to help, and we're passionate about seeing you be successful.