UPS adds automatic 'demand' surcharge but there's a way for customers to avoid the fee

CUSTOMERS using UPS shipping may have paid extra for certain peak options.

UPS confirmed to The U.S. Sun that demand surcharges are placed on customers who ship within specified thresholds.

1

Customers who ship internationally may be charged extra for their shipment.

The surcharge amount depends on the weight and size of the package.

Customers will also pay more if they send a large number of packages.

"A Demand 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," a UPS spokesperson confirmed to The U.S. Sun.

Read More on Shipping

The surcharge guidance has been in place since January 15.

BREAKING DOWN THE CHARGES

After sending 20,000 packages, customers will be charged per package based on the service level.

For example, shippers using UPS SurePost or UPS Ground Residential - both economy and non-urgent services - will receive $1.25 charges per package after reaching 105 to 125 percent of the baseline volume.

Premium services, like UPS Next Day Air Residential, will pay $2.25 extra per package for similar additional shipping volumes.

Most read in Money

Both the economy and premium services become more expensive when companies ship out greater volumes.

Customers also paid different prices for international shipments to other countries.

Shipments sent to the US from Australia, New Zealand, Vietnam, Japan, Korea, Malaysia, Thailand, Indonesia, Singapore, Philippines, and Taiwan receive a minimum of $0.65 per pound charge.

Shipments to the US from Mainland China, Hong Kong, and Macau cost an additional $1.22 per pound.

US LABOR IMPACT

In late July, UPS agreed to a tentative five-year contract agreement with its shipment workers to keep drivers on the road.

UPS staffers, part of the International Brotherhood of Teamsters Union, threatened to strike if financial revisions and safety changes weren't implemented into the new deal.

A 15-day Teamsters strike in 1997 cost an estimated $850million, according to MarketPlace.

"Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers," UPS CEO Carol Tomé said in a statement.

"This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong."

The agreement was subject to a vote by union members.

Read More on The US Sun

The U.S. Sun reports on other shipping companies - here is what might happen if this popular company goes bankrupt.

Also, will UPS ship on upcoming holidays?