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2020 UPS Rate Increase, Part 1: Accessorial Fees

By Last updated on: November 22, 2019

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
2020 Increase
2019 Cost
2020 Cost
Increase
Address Correction$0.60$16.40$17.003.66%
Remote Area Surcharge for Alaska$2.00$28.00$30.007.7%
Remote Area Surcharge for Hawaii$1.00$9.00$10.001.1%
Collect on Delivery (C.O.D.)$1.00$14.50$15.506.9%
Chargeback for Consignee Billing Shipments$0.60$16.40$17.003.7%
Delivery Confirmation Signature Required$0.25$5.00$5.255.3%
Delivery Confirmation Adult Signature Required$0.30$6.05$6.355.2%
Dry Ice$0.30$5.55$5.853.7%
Missing/Invalid Account Number or Refusal Fee$0.60$16.40$17.003.7%
Over Maximum Limits$25.00$850.00$875.002.94%
Return Label (Electronic and Print) $0.05$1.00$1.05 5%
Ship to a UPS Access Point Location-$1.50$1.50$0.000%
UPS Carbon Neutral (Standard)-$0.05$0.10$0.05-50%

New 2020 UPS accessorial fees:Value-Added Services

New FeePrice in 2020
Prohibited Item Fee$150.00
Rebill Fee$17.00/request
Entry Type 86 Processing$10.00

UPS Additional Handling Price Increase

Additional Handling20192020Increase
Weight (Domestic)$23.00$24.004.34%
Length and Width (Domestic)$14.25$15.005.26%
International$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) 20192020Increase
Air Commercial$2.95$3.105.08%
Air Commercial Extended$2.95$3.6022.0%
Ground Commercial $2.80$2.955.36%
Ground Commercial Extended$2.80$3.4523.2%
Ground Residential$3.80$4.005.26%
Ground Residential Extended$4.85$5.4011.3%
Air Residential $4.35$4.401.15%
Air Residential Extended$4.85$5.4011.3%
Import$2.30$2.404.35%

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

Residential Surcharge20192020Increase
Ground and Standard$3.95$4.103.8%
Domestic and International Air$4.55$4.754.4%
Hundredweight (and GFP)$40.00$41.854.62%
Worldwide Express Freight$130.00$140.007.7%

UPS Delivery Change Request Price Increase

Delivery Change Request20192020Increase
Phone Request$6.60$6.00-9.0%
Web Request$5.50$6.009.1%

UPS Delivery Intercept Price Increase

Delivery Intercept20192020Increase
Phone Request$22.90$23.904.37%
Web Request$16.40$17.003.66%

UPS Dangerous Goods (Hazardous Material) Price Increase

Dangerous Goods (Hazardous Material)20192020Increase
Domestic and Air Accessible$98.00$105.007.14%
Domestic Air Inaccessible$49.00$51.505.10%
Ground$35.00$37.005.71%

Scheduled Pickup Weekly Service Charges

Daily Pickup 20192020Increase
($0.00-$74.99 Weekly Billing Total)$29.00$31.006.9%
($75.00+ Weekly Billing Total)$14.50$15.506.9%
Daily On-Route Pickup
($0.00-$74.99 Weekly Billing Total)$27.00$29.007.4%
($75.00+ Weekly Billing Total)$13.50$14.507.4%
Day-Specific Pickup
4 days ($0.00-$74.99 Weekly Billing Total)$27.00$29.007.4%
4 days ($75.00+ Weekly Billing Total)$13.50$14.507.4%
3 days ($0.00-$74.99 Weekly Billing Total)$20.30$22.309.9%
3 days ($75.00+ Weekly Billing Total)$13.45$14.457.4%
1 or 2 days$13.45$14.457.4%
UPS Smart Pickup$13.45$14.457.4%

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 2020 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.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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