If your company ships to remote or rural destinations, you have seen additional fees tacked on the shipment 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 specific predetermined ZIP codes. Therefore, let’s look at the different costs you could experience.
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How much do these DAS surcharges cost?
|Delivery Area Surcharge (DAS)||2019||2020||2021||2022||2023|
|Air Commercial Extended||$2.95||$3.60||$3.85||$4.25||$4.50|
|Ground Commercial Extended||$2.80||$3.45||$3.70||$4.10||$4.50|
|Ground Residential Extended||$4.85||$5.40||$5.90||$6.50||$7.15|
|Air Residential Extended||$4.85||$5.40||$5.90||$6.50||$7.15|
Delivery Area Surcharge (DAS)
Ordinarily, this is the most common of all three types. DAS is a surcharge for each package delivered to specific ZIP Codes within the 48 contiguous states. Delivery Area Surcharge does not apply to UPS Ground with Freight Pricing shipments.
Extended Delivery Area Surcharge (EDAS)
UPS will apply an additional charge for each shipment picked up or delivered in an extended area. Zip codes define this area in a file provided by UPS.
Remote Area Surcharge
A Remote Area Surcharge applies to deliveries to specific ZIP Codes within Alaska and Hawaii. This surcharge is applied to delivery or pickup from an area beyond UPS extended areas, which are less accessible for pickups and deliveries. Additionally, this charge will apply to domestic, international services, and UPS simple rate shipments. Accordingly, the fee for this charge is $38.00 in Alaska and $13.50 in Hawaii.
UPS Delivery Area Surcharges apply to the following services:
|UPS Next Day Air Early||UPS Next Day Air||UPS Next Day Air Saver|
|UPS 2nd Day Air||UPS 3 Day Select||UPS Ground|
|UPS Worldwide Express Plus||UPS Worldwide Express NA1||UPS Worldwide Express|
|UPS Worldwide Saver||UPS Worldwide Expedited||UPS 3 Day Select from Canada|
|UPS Standard to/from Canada||UPS Standard to/from Mexico|
Data and reporting are key
Most companies pay the weekly UPS invoice without any review, and they assume everything is correct. Besides, how could a company as big as UPS make a mistake? As a result, most shippers are unaware of these surcharges’ impact. For instance, look at the following graphs; one client of Refund Retriever had a DAS charge on 37% of all shipments!
How can I reduce the cost of UPS DAS fees?
Since most companies cannot change the destination of their shipments, the UPS agreement is the first place to reduce UPS delivery area surcharges. In particular, ask your UPS representative for a discount on DAS. A 25-50% discount on the published rate is an excellent goal. Before you ask for this concession, ensure you see many of these charges. What percentage of your packages are being charged one of these fees?