Many UPS shippers see an additional handling charge on their UPS invoice and wonder what it is and why is so expensive. Additional handling charges are an added fee basically because the package did not conform to the characteristics that UPS wants. They have to treat the package differently than the rest. So how much are these fees and how can we reduce them?
How much is the UPS additional handling fee?
|Weight – actual weight of 50 pounds or more||$ 24.00|
|Length – longest side exceeds 48 inches||$ 15.00|
|Width – second longest side over 30 inches||$ 15.00|
2020 UPS changes to additional handling
Before this year, an additional handling charge was applied to packages with an actual weight of 70 pounds or greater. Beginning in 2020, any domestic package with an actual weight greater than 50 pounds will see a charge of $24.00 added to the cost.
How does UPS define an additional handling charge?
The following is from the 2020 Tariff/Terms and Conditions of Service Agreement that was updated on December 29, 2019:
41.9 UPS Additional Handling Charge
- Any article that is not fully encased in a cardboard shipping container, including tires;
- A package with an outer shipping container not made of corrugated cardboard,
- including but not limited to canvas, leather, metal, wood, hard plastic, soft plastic, or Styrofoam;
- Any article in a soft-sided pack (polybag or bubble mailer) that exceeds 18 inches along the longest side, 14 inches along the second-longest side, or 6 inches in height;
- Packages covered in shrink wrap or stretch wrap;
- Any package bound with metal, plastic or cloth banding, or that has wheels, casters, handles, or straps;
- Cylindrical-like items;
- Packages routed through UPS’s irregular package sortation process;
- Any Package with its longest side exceeding 48 inches or its second-longest side exceeding 30 inches;
- Any domestic package with an actual weight greater than 50 pounds;
- International package with an actual weight of 71 lbs or more;
How can a company avoid UPS additional handling charges?
UPS additional handling and other fees account for a considerable portion of a small parcel shipper’s overall shipping spend. Therefore, effective shipping spend management is vital for any business to achieve a competitive edge in the densely populated e-commerce market. Our analytics and reporting will provide shipping and transportation insight for all levels of your logistics and technology.
They cannot avoid shipping packages within the UPS definition. Many companies have this cost reduced during a contract agreement negotiation with UPS. The carrier might agree to a 25-75% reduction of this fee.
A shipper can also request to have one of the four different situations discounted. Rather than receive a 50% discount on all the additional handling fees, opt for a reduction on the two most used fees and full price on the others.
But what if instead of a cost reduction, a company could negotiate a variance in the definition of UPS additional handling? This would cause fewer packages from falling within the limits. Try altering the UPS agreement to increase the actual weight limit to 53 or 55 pounds if your company has a product that is just over the limit. Another alternative is to request a variance in the measurements. Namely, negotiate for a change to “any package with its longest side exceeding 50 inches or its second-longest side exceeding 33 inches.”
Contact the experts at Refund Retriever to analyze your current accessorial fee spend. In summary, we can help lower future shipping costs with a full contract negotiation.