UPS announced the 2020 rate increase that is going into effect on December 29, 2019. Incidentally, the 2020 UPS accessorial fees and charges are a large part of every shipper’s weekly billing. Subsequently, the rates for UPS ground and air will all increase an average of 4.9%.
Below you will find the most of the fee increases for UPS accessorial fees.
|UPS Accessorial|| |
|Remote Area Surcharge for Alaska||$2.00||$28.00||$30.00||7.7%|
|Remote Area Surcharge for Hawaii||$1.00||$9.00||$10.00||1.1%|
|Collect on Delivery (C.O.D.)||$1.00||$14.50||$15.50||6.9%|
|Chargeback for Consignee Billing Shipments||$0.60||$16.40||$17.00||3.7%|
|Delivery Confirmation Signature Required||$0.25||$5.00||$5.25||5.3%|
|Delivery Confirmation Adult Signature Required||$0.30||$6.05||$6.35||5.2%|
|Missing/Invalid Account Number or Refusal Fee||$0.60||$16.40||$17.00||3.7%|
|Over Maximum Limits||$25.00||$850.00||$875.00||2.94%|
|Return Label (Electronic and Print)||$0.05||$1.00||$1.05||5%|
|Ship to a UPS Access Point Location||-$1.50||$1.50||$0.00||0%|
|UPS Carbon Neutral (Standard)||-$0.05||$0.10||$0.05||-50%|
New 2020 UPS accessorial fees: Value-Added Services
|New Fee||Price in 2020|
|Prohibited Item Fee||$150.00|
|Entry Type 86 Processing||$10.00|
UPS Additional Handling Price Increase
|Length and Width (Domestic)||$14.25||$15.00||5.26%|
Additional handling charges are an added fee because the package did not conform to the characteristics that UPS wants. They have to treat the package differently than the rest. For more information, click here.
In addition to a general price increase, the weight threshold for applying an additional handling surcharge will change. UPS additional handling will be lowered from 70 pounds to 50 pounds actual weight for UPS ground and express services. Therefore, more packages will see an additional handling fee in 2020.
UPS additional handling will be lowered from 70 pounds to 50 pounds actual weight for UPS ground and express services.
UPS Delivery Area Surcharge (DAS) Price Increase
|Delivery Area Surcharge (DAS)||2019||2020||Increase|
|Air Commercial Extended||$2.95||$3.60||22.0%|
|Ground Commercial Extended||$2.80||$3.45||23.2%|
|Ground Residential Extended||$4.85||$5.40||11.3%|
|Air Residential Extended||$4.85||$5.40||11.3%|
What is DAS?
If your company ships to remote or rural destinations, you have seen additional fees tacked on the shipments charges called UPS delivery area surcharges (DAS) and extended delivery area surcharges (EDAS). UPS applies these additional charges to packages either picked up or delivered to certain ZIP codes that are predetermined. 2020 UPS accessorial fees increased these fees as well as the number of zip codes this applies toward. Therefore, let’s take a look at the different charges that you could experience. For more information, click here.
UPS Residential Surcharge Price Increase
|Ground and Standard||$3.95||$4.10||3.8%|
|Domestic and International Air||$4.55||$4.75||4.4%|
|Hundredweight (and GFP)||$40.00||$41.85||4.62%|
|Worldwide Express Freight||$130.00||$140.00||7.7%|
UPS Delivery Change Request Price Increase
|Delivery Change Request||2019||2020||Increase|
UPS Delivery Intercept Price Increase
UPS Dangerous Goods (Hazardous Material) Price Increase
|Dangerous Goods (Hazardous Material)||2019||2020||Increase|
|Domestic and Air Accessible||$98.00||$105.00||7.14%|
|Domestic Air Inaccessible||$49.00||$51.50||5.10%|
Scheduled Pickup Weekly Service Charges
|($0.00-$74.99 Weekly Billing Total)||$29.00||$31.00||6.9%|
|($75.00+ Weekly Billing Total)||$14.50||$15.50||6.9%|
|Daily On-Route Pickup|
|($0.00-$74.99 Weekly Billing Total)||$27.00||$29.00||7.4%|
|($75.00+ Weekly Billing Total)||$13.50||$14.50||7.4%|
|4 days ($0.00-$74.99 Weekly Billing Total)||$27.00||$29.00||7.4%|
|4 days ($75.00+ Weekly Billing Total)||$13.50||$14.50||7.4%|
|3 days ($0.00-$74.99 Weekly Billing Total)||$20.30||$22.30||9.9%|
|3 days ($75.00+ Weekly Billing Total)||$13.45||$14.45||7.4%|
|1 or 2 days||$13.45||$14.45||7.4%|
|UPS Smart Pickup||$13.45||$14.45||7.4%|
Here is a PDF with all UPS daily rates for 2020. We will be analyzing these rate increases in an upcoming blog. Stay tuned.
Lessen the 2020 UPS accessorial fees impact on your company…
All companies need to explore all viable options to help minimize the impact of the 2021 UPS rate increases. The best option is late delivery auditing, Refund Retriever’s late package refund technology will actively monitor all of your shipping activity. Our technology will have the money credited back to your carrier invoices.
Another option is a full carrier contract analysis. Refund Retriever’s contract experts will analyze your current carrier agreements and parcel spend. Besides, when was the last time your UPS agreement was reviewed by an expert? Which 2020 UPS accessorial fees will cost you the most? Are your shipments earning the full discounts? Therefore, let Refund Retriever help your logistics manager understand UPS charges.
Value-added services conclusion
2020 UPS accessorial fees will account for a huge percentage of a company’s shipping costs. FedEx and UPS do not make identifying and submitting claims easy. Lucky for you the programming geeks at Refund Retriever have automated the late delivery refund logistics no matter how many packages your company ships each day. Ship smarter and become the logistics expert with Refund Retriever.