UPS has recently announced a new fee and increases to already existing services and fees. As a shipper, you need to stay informed of your logistics costs every step of the way. Please make note of the following changes to package surcharges and accessorial fees, effective December 28, 2015.
Third-Party Billing (NEW FEE)
Beginning January 4, 2016, UPS will institute a Third-Party Billing Service of 2.5% applicable to the total charges on all packages that are billed to third parties.
This is a brand new fee and it targets one of the three potential UPS billing methods.
- Bill Shipper Prepaid: UPS bills shipping charges to the shipper’s UPS account
- Bill Receiver Collect: UPS bills shipping charges to the receiver
- Bill Third Party 3rd Party: UPS bills shipping charges to a party other than the shipper or receiver. The third party must have a valid UPS account number and must have agreed to accept the charges
Why is this happening?
As of now, end of October 2015, there is no explanation from UPS on this increase. It could be additional payment dispute situations that UPS billing representatives must address that are not present with packages shipped on a shipper’s own packages. Additional operating costs on UPS?
Now that UPS has announced this new fee, it’s just a matter of time before FedEx also adds this 3rd party billing fee.
Here is a partial list of some other increases that will affect your bottom line:
Additional Handling Surcharge – charge will increase $1.50.
Address Corrections – surcharge will increase $0.50. .
Delivery Confirmation – Signature Required and Delivery Confirmation Adult Signature Required will increase $0.25.
UPS Delivery Intercept – increase $0.40 for requests made electronically and $0.70 for requests made by telephone.
UPS Next Day Air® Early** Surcharge – premium will increase $2.00.
Large Package Surcharge – will increase $10.00.
Printer Fee – Printer Lease fee will increase $1.00.
Residential Surcharges – Ground and Air will increase $0.15.
Scheduled Pickup – weekly charge assessed for Daily, Daily On-Route, and Day-Specific 4 Day Pickup service will increase $1.20 and $2.40 depending on your billing totals.
Refund Retriever can help reduce your UPS and FedEx costs by ensuring these fees are correctly applied to your invoice. New costs for transportation impact your bottom line, even if its a small percentage of your overall shipping. Our parcel auditing technology will not only find the late deliveries for a full refund, but we will also monitor and report your accessorial fee charges.