UPS Launches Peak Season Surcharge

UPS has announced an increase in the peak demand surcharge for 2025, which has added new costs for transportation companies during the holiday peak periods. The surcharge will take effect on September 28 and continue until January 17, covering the busiest periods for e-commerce and retail deliveries throughout the year.

According to UPS, the cost per package ranges from $0.40 to as high as $8.75, depending on the volume of freight and service level. The surcharge applies to major services, including air, ground residential, and ground savings. For some customers, higher fees will be charged as early as October 26, thus tightening profit margins during the peak season.

It is worth noting that UPS's announcement was made relatively late, less than a month before the surcharge takes effect. Many companies are thus facing a time crunch, with little time to adjust their budgets, renegotiate contracts, or explore alternative carriers. Analysts point out that this delayed announcement may weaken shippers' bargaining power and give UPS better control over pricing during the most critical transportation period of the year.

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