Holiday Shipping in July

June 20, 2017

It's Beginning to Look a Lot Like... UPS Delivery Surcharges

Summer has only just arrived and UPS has already unveiled plans to add residential delivery surcharges for the holiday season. The extra fees will be effective surrounding Black Friday, Cyber Monday and the late December holiday rush to offset costs for additional resources and staffing.

Here’s the deal. Between Nov. 19 and Dec. 2, UPS will add a 27-cent charge on all Ground packages sent to homes – Notably, these dates include Black Friday and Cyber Monday. There will be no extra fees imposed between Dec. 3 and Dec. 16. Then, from Dec. 17 to Dec. 23, UPS will again add a 27-cent charge on residential Ground deliveries, as well as an 81-cent fee on Next Day Air Residential, and 97-cent fee on both 2nd Day Air Residential and 3 Day Select Residential Services.

There may be a loop hole, though… Since charges will only apply to residential deliveries, shoppers can take advantage of ship-to-store options when possible.

To justify the fee, UPS cites the need for them to add extra planes, trucks and thousand of staff members to meet holiday shipping demand. But just how much of a surge are we talking? To give you an idea, reports that “in 2016, UPS hired 95,000 seasonal employees during the peak holiday season -- in which UPS delivered an average daily volume of 30 million packages, in comparison to the non-holiday average of more than 19 million daily packages.” With such an influx in demand, it’s no surprise that UPS would want to encourage shoppers to order outside of the surge windows.

According the The Wall Street Journal, some analysts believe that FedEx may even follow in UPS’s footsteps and add holiday delivery surcharges of their own since “the two rivals often take pricing cues from each other.” We’ll keep you posted as the updates roll in.