UPS Announces 2020 Rate Increase and New Shipping Fees

The major carrier is increasing rates by 4.9% and adding some shipping fees to watch out for

How much are the rates increasing? 

UPS announced it’s 2020 rate increase last month that will take effect right before the new year on December 29, 2019. This change includes an average increase for UPS Ground, UPS Air and International services of 4.9 percent. The same as their competitor FedEx, announcing rate changes two months previously, that will go into effect January 6, 2020.

What rate changes should my business be aware of? 

According to UPS, the rate increase is to fund their expansion and service enhancements, “this [rate change] supports ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.” Although the average increase is 4.9% the changes vary based on services, with Air Services seeing sharper increases as your packages travel further than Ground Services. You can find the full rate listing on the UPS website.

What new surcharges should we watch out for? 

In addition to the general rate increase, there are new surcharges that are as important as the rates themselves, including a new rebill fee, prohibited item fee, and changes to the additional handling fee. We’ve outlined the main takeaways below:

• Rates for UPS Ground, UPS Air, and International services will increase an average of 4.9%
• A rebill fee will be assessed for each request to change the billing account for a shipment
• A prohibited item fee will apply to packages containing prohibited articles or restricted articles not in compliance with all UPS policies and procedures and applicable laws and regulations if found in the UPS system
• The weight threshold for applying an additional handling surcharge will be lowered from 70 pounds to 50 pounds actual weight for UPS Ground and UPS Air services.

If you are sending heavy packages or have any concerns about the rates or surcharges reach out to your UPS representative. By reaching out to your representative you can possibly negotiate a deal for your business. Be sure to review the rates which can be found on the UPS website or talk to a Quadient shipping specialist who can answer questions and provide guidance on the questions to ask and what software can optimize your shipping workflow.

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