United Parcel Service Inc will begin charging an additional $150 on June 4, 2018, to handle oversized packages and an additional new charge for packages with mislabeled dimensions. Over maximum limit packages heavier than 150 pounds will increase from $500 to $650, a $150 increase.
WHY IS UPS CHARGING YOU MORE?
The charges are designed to discourage shippers from sending heavier products in the small parcel network. With the expansion of e-commerce, shoppers now can purchase products like furniture, tires, and appliances with the simple click of a mouse. In the past, these products required professional delivery, but sellers have started using FedEx and UPS. UPS wants sellers to use freight networks for larger shipments.
“It’s not a revenue-generating charge, its something we have increased regularly over time to encourage customers to ship through the UPS Freight network for these over max items.” – UPS spokesman Glenn Zaccara via Reuters
FROM UPS WEBSITE:
Effective June 4, 2018, the fee for Over Maximum Limits and the Oversize Pallet Handling Surcharge will increase by $150 and a new Shipping Charge Correction Audit Fee will be added. The Audit Fee will be assessed if the average shipping charge correction in an invoice week is more than $5.00. The Audit Fee will be the greater of $1.00 per package subject to a shipping charge correction or 6% of the total amount of shipping charge corrections during the applicable invoicing period.
WHAT IS UPS OVER MAXIMUM LIMIT?
Packages with an actual weight of more than 150 pounds, or that exceed 108 inches in length or a total of 165 inches in length and girth combined, as measured to determine their billable weight, are not accepted for transportation.
IMPACT ON SHIPPERS?
We have seen an increase in over maximum surcharges since this year’s first increase at the beginning of 2018. Many shippers are not aware of these charges until it is too late. With the help of Refund Retriever’s large surcharge reports, a shipper can query past shipment history to identify previous costs.
Our reporting and analytics can identify each tracking number with any surcharge over $30 in real time. We find that most of these substantial accessorial fees are preventable, many times it is a simple case of lack of education.
BUT WAIT… MORE INCREASES COMING
Beginning on July 8, any UPS package with an actual weight over 70 pounds will have a $19 Additional Handling Fee. Currently, this fee is only $12. All residential shipments determined to be a Large Package will see an increased cost of $90 from $80.
Contact Refund Retriever today if these charges are an issue for your business. Our parcel audit combined with a full suite of reports and analytics can reduce your shipping cost and help reveal your true shipping spend. Stay tuned for more information on the additional handling fees.