How to Get Ahead of The UPS Price Increase

If your company ships packages on a regular basis, you may need to keep an eye on costs in the fourth quarter—especially as the holiday season ramps up. Both UPS and FedEx announced plans to increase certain shipping surcharges during the holiday period (November 19 through December 24).

UPS will increase ground residential surcharges by $0.27, effective November 19. On December 17, UPS will increase residential surcharges for Next Day Air and 2nd Day Air by $0.81 and $0.97, respectively. UPS will also add a $24 surcharge to large packages (a combined package volume greater than 130 inches) and a $249 surcharge to packages that exceed 150 lbs or a package volume greater than 165 inches, beginning November 19. On November 20, FedEx will introduce a $3 surcharge to express and ground (US and International) package services and a $25 surcharge for oversize packages.

In the interim, companies can work to implement cost-effective small package freight strategies that could help them budget for the increase.

Here are three ways your organization could streamline costs.

Are the right services being used?

Executives should review their company’s current shipping services to ensure they are the most cost-effective options. If the company uses overnight air on a regular basis, consider if there are packages that could be shipped more affordably by using ground service. Also, verify that products are being shipped in the appropriately sized boxes so that you are not paying extra for added airspace.

Are the “extras” really necessary?

If your employees are sending packages that require signatures upon delivery or are insuring packages, question whether it’s necessary in all cases. Services like insurance or Delivery Confirmation Signature will tack on additional fees, so asking employees to use such services only when needed could help reduce accessorial-related fees.

Is it time to consider other carriers?

While UPS’ and FedEx’s surcharge increase is seasonal, it may provide the impetus to switch to a more affordable carrier. Think about considering regional options that offer similar services at competitive pricing and typically with fewer accessorial fees. 

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