UPS Establishes New Peak Shipping Charge
June 19 2017 - 9:20AM
UPS (NYSE:UPS) today announced a new peak charge applicable
during selected weeks in November and December 2017 for U.S.
Residential, Large Packages and packages Over Maximum Limits. The
new charge is designed to enable UPS to continue to provide
best-in-class value to customers while offsetting some of the
additional expenses incurred during significant volume
surges.
“We’re focused on helping our customers achieve success during
some of their most important selling seasons,” said Alan
Gershenhorn, UPS Chief Commercial Officer. “To meet their
requirements, UPS flexes its delivery network to process near
double our already massive regular daily volume, and that creates
exceptional demands.”
To meet peak volume demand, among many other investments, UPS
acquires on a temporary basis and often at shorter-term premium
rates, additional air and truck cargo capacity, temporary
facilities, and additional sorting and delivery personnel.
Further, shipments which are larger, heavier, or have
unconventional shapes or sizes create even greater operational
complexity during high-demand periods.
“Our goal is to help every customer obtain the delivery capacity
they need, combined with predictable and timely service they count
on from UPS, even when there is limited capacity in the UPS
network.” Gershenhorn continued.
The company’s new per-piece peak charge* for the U.S. 48
contiguous states and intrastate Alaska and Hawaii** for applicable
package types and periods is summarized in this chart***:
|
Nov 19 to Nov 25 |
Nov 26 to Dec 2 |
Dec 3 to Dec 9 |
Dec 10 to Dec 16 |
Dec 17 to Dec 23 |
UPS Next Day Air® Residential |
n/a |
n/a |
n/a |
n/a |
$0.81 |
UPS 2nd Day Air® Residential |
n/a |
n/a |
n/a |
n/a |
$0.97 |
3 Day Select® Residential |
n/a |
n/a |
n/a |
n/a |
$0.97 |
Ground Residential |
$0.27 |
$0.27 |
n/a |
n/a |
$0.27 |
n/a = no additional charge during this period
* Peak Surcharge to be published Sept 1, 2017 in a revised
version of the UPS U.S. Rate & Service Guide
** For packages to and from Alaska and Hawaii, the surcharge is
posted on ups.com/rates
***Chart does not show all potentially applicable peak
surcharges. Visit ups.com/rates for more detailed information.
“With the new peak charge, per-package costs for many shipments
will only marginally increase during this very busy time of the
year.” Gershenhorn continued.
For example, a five-pound UPS Next Day Air® package shipped from
Atlanta, GA to a residential address in Philadelphia, PA will
increase about one percent, compared to non-peak shipping times. A
similar package shipped to a commercial address would experience no
additional cost.
From November 19 through December 23, UPS will also apply peak
surcharges to Large Packages and packages that exceed maximum size
limits. These charges are in addition to normal surcharges
applicable to such packages. When shipping packages that exceed
UPS’s published maximum size limits, customers are encouraged to
consider using UPS Freight.
In addition, UPS will apply a peak surcharge on specific
international air shipping lanes during certain periods of the
year.
During the 2016 holiday season, the company’s average daily
volume exceeded 30 million packages on more than half of the
available shipping days. In contrast, on an average non-peak
day, the company ships more than 19 million packages. The company
hired about 95,000 seasonal employees during the 2016 peak shipping
period. Throughout all of 2016, UPS shipped almost 5 billion
packages, with almost 3 million packages and documents shipped
every day by the company’s airline. Almost 3% of global GDP and 6%
of U.S. GDP flows through the UPS network every day.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the web
at ups.com or pressroom.ups.com and its
corporate blog can be found
at longitudes.ups.com. To get UPS news
direct, follow @UPS_News.
Glenn Zaccara
gzaccara@ups.com
(404) 828-4663
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