Sellers' costs soar! UPS announces peak season surcharges and a 5.9% price increase across the board next year!

According to foreign media reports, UPS recently announced that the overall package rate will increase by 5.9% from December 26, 2023. In addition, it will also impose a peak surcharge from October 1, 2023 to January 13, 2024. Previously, UPS's competitor FedEx also announced the same move.

FedEx will increase the rates of domestic services and US import and export services by 5.9% starting January 1, 2024, and will levy the first round of peak season surcharges starting October 2. It is worth mentioning that the two express delivery companies have now renamed the peak season surcharges as "demand" surcharges.

Like FedEx, UPS did not release specific charges, only an overview of the overall rate increase, which UPS said would help facilitate its "continued expansion and increased capacity to serve our customers at an even higher level."

UPS stated in the announcement that the following changes will take effect on December 26, 2023:

• UPS ground, air and international rates to increase 5.9% on average

• The list of postal codes where the regional surcharge applies will change.

• The list of postal codes that align with certain areas will change.

UPS announced that it will impose demand-based surcharges from October 1, 2023 to January 13, 2024. Take domestic transportation in the United States as an example: the current attachment fee for packages that require "extra handling" is US$3.50 per piece, and during the peak season this fee increases to US$6.90, an increase of nearly 100%.

The report said that the increase in UPS rates means that sellers on websites such as eBay and Etsy will have to pay more for shipping, because these market platforms not only charge sellers payment processing fees, but also charge a commission on the total sales volume including shipping and handling fees.

Editor ✎ Nicole/

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