UPS Raises Rates 5.9%, Releases Holiday 2023 Demand Surcharges

Liz Morton
Liz Morton


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UPS has announced rates will be increasing an average ~5.9% in December and released information about holiday season 2023 peak demand surcharges that will go into effect in October.

UPS Shipping Costs and Rates

2024 UPS Daily Rates Information
Effective December 26, 2023, Daily Rates for our services will increase. This helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS. Below is an overview of our 2024 Daily Rates.*

Package
The following changes will be effective December 26, 2023. Previews will be available later.

  • The rates for UPS® Ground, UPS Air and International services will increase an average net 5.9%.
  • The list of ZIP Codes to which Area Surcharges apply will change.
  • The list of ZIP Codes aligned to certain zones will change

*The impact of these changes on your shipping costs will vary according to your shipping characteristics and the terms of your UPS agreement.

UPS Demand Surcharges

October 1, 2023 Update
UPS Demand Surcharges

Demand Surcharge – Applied to Additional Handling and Large Packages

A Demand Surcharge will apply to packages that require Additional Handling and Large Packages for all U.S. domestic,U.S. import, and U.S. export shipments for qualifying customers.

A Demand Surcharge will apply to all packages that are Over Maximum Limits for all U.S. domestic, U.S. import, and U.S. export shipments. The Demand Surcharges will apply in the amounts set forth below.

upssurcharge1.jpg

Demand Surcharge – Applied to UPS® Air Residential, UPS® Ground Residential and UPS SurePost® Packages
A Demand Surcharge will apply to certain UPS Air Residential, UPS Ground Residential and UPS SurePost packages, for customers who are billed for more than 20,000 packages during any week following October 2021.

The Demand Surcharge amounts below will apply on a weekly basis to each package over 105% of the Baseline weekly average volume for each service level, during the specified Demand Period. The highest surcharge amount applicable to the volume in excess of the Baseline weekly average volume in a given week will apply to all packages over 105% of the Baseline weekly average volume in that week within each service level.

upssurcharge2.jpg

Demand Surcharge – Applied to UPS® Air Residential, UPS® Ground Residential and UPS SurePost® Packages

A Demand Surcharge will apply to certain UPS Air Residential UPS Ground Residential and UPS SurePost packages, for customers who are billed for more than 20,000 packages during any week following October 2022.

The Demand Surcharge amounts below will apply on a weekly basis to each package over 105% of the Baseline weekly average volume for each service level, during the specified Demand Period. The highest surcharge amount applicable to the volume in excess of the Baseline weekly average volume in a given week will apply to all packages over 105% of the Baseline weekly average volume in that week within each service level.

upssurcharge3.jpg

This announcement brings UPS pretty much in line with peak demand surcharges for FedEx that were released last month.

FedEx Releases Peak “Demand” Surcharges For 2023 Holiday Season
FedEx has released Peak surcharge update, rebranding as “Demand” surcharges, in preparation for holiday season shipping.

And as always, when shipping costs rise, so do selling costs on marketplaces like eBay and Etsy which include the cost of shipping in their calculations for sellers fees, giving those marketplaces a bump in revenue that will no doubt be priced into what buyers are paying for goods this holiday season.

UPSShipping

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Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!