UPS Announces Peak Season Surcharges: 5.9% Across-the-Board Price Increase For Next Year

According to foreign media reports, UPS recently made an announcement that from December 26, 2023, the overall parcel rate will be increased by 5.9%. And it will also impose a peak surcharge from October 1, 2023, to January 13, 2024. Earlier, UPS's rival FedEx announced the same move.

FedEx will increase rates for domestic service and U.S. import and export service by 5.9% effective January 1, 2024, with the first round of peak season surcharges beginning October 2nd. It's worth noting that both carriers are now renaming the peak season surcharge the "demand" surcharge.

Like FedEx, UPS did not release specific rates but only an overview of the overall rate increase, which UPS said would help facilitate its "continued expansion and capacity enhancements to improve service to our customers."

In its announcement, UPS noted that the following changes will go into effect on December 26, 2023:

• Rates for UPS Ground, Air, and International services will increase by an average of 5.9 percent.
• The list of ZIP codes to which regional surcharges apply will change.
• The list of ZIP codes that align with certain regions will change.

UPS has announced that from October 1, 2023, to January 13, 2024, it will impose a demand surcharge. For example, for shipments within the U.S., the attachment fee for packages requiring "extra handling" is currently $3.50 per package and increases to $6.90 during peak season, a nearly 100 percent increase.

The increase in UPS rates means that sellers on sites like eBay and Etsy will have to pay more for shipping, according to the report. That's because these marketplaces charge sellers not only a payment processing fee but also a commission on total sales, including shipping and handling.