2020 UPS Shipping Rates: What You Need to Know

If you run a business that requires frequent shipping, it is essential to stay updated on the latest UPS shipping rates for 2020. Understanding how UPS calculates shipping costs, comparing costs with other major carriers, and negotiating lower shipping rates are all key factors in optimizing your expenses. In this article, we will break down everything you need to know about the 2020 UPS shipping rates, including tips for reducing your costs, the impact of dimensional weight, and the changes to shipping rates due to COVID-19.

Understanding UPS Shipping Zones

One factor that plays a significant role in determining UPS shipping rates is the shipping zone. UPS divides the United States into eight shipping zones, with Zone 1 being the closest and Zone 8 being the furthest. The farther the destination, the higher the shipping rate. Therefore, it is crucial to know the shipping zone of your shipment’s destination, which you can easily look up on the UPS website.

It is important to note that the shipping zone is not solely based on the distance between the origin and destination. Other factors, such as the package’s weight and size, also play a role in determining the shipping zone. Additionally, UPS offers various shipping options, such as ground, air, and international, each with its own set of shipping zones and rates. Therefore, it is essential to carefully consider all of these factors when selecting a shipping option and calculating the cost of your shipment.

A Breakdown of UPS Shipping Costs

UPS offers a variety of shipping services, each with its own set of costs. The three primary factors that influence shipping costs are package weight, package dimensions, and shipping destination. UPS also charges additional fees for special services such as Saturday delivery, signature confirmation, and hazardous materials. It is crucial to understand all of the potential fees and charges when planning your shipment to avoid any surprise costs.

Another important factor to consider when shipping with UPS is the delivery time. UPS offers different delivery options such as standard, expedited, and express shipping. The delivery time varies depending on the shipping service selected and the destination. It is important to choose the appropriate shipping service based on the urgency of the shipment and the delivery time required. Additionally, UPS provides tracking information for all shipments, allowing customers to monitor the progress of their package and ensure timely delivery.

How to Calculate UPS Shipping Rates

Calculating UPS shipping rates can be done online using the UPS shipping calculator tool. This tool requires inputs such as the origin and destination zip codes, the package weight and dimensions, the package type, and the shipping date. Once you submit this information, you will receive a quote for your desired UPS shipping service.

It is important to note that UPS offers various shipping services, such as ground, air, and international shipping. Each service has its own rates and delivery times, so it is important to choose the service that best fits your needs. Additionally, UPS offers discounts for frequent shippers and for those who use their online shipping tools.

When calculating UPS shipping rates, it is also important to consider any additional fees that may apply, such as fuel surcharges or residential delivery fees. These fees can vary depending on the shipping service and the destination. It is recommended to review the UPS website or speak with a UPS representative to fully understand the costs associated with your shipment.

Tips for Reducing Your UPS Shipping Costs

There are several ways to reduce your UPS shipping costs. Firstly, negotiating lower shipping rates with UPS is a possibility, especially if you frequently ship a high volume of packages. It is also essential to consider the option of switching to a cheaper UPS service if your shipment does not require express delivery. Additionally, properly packaging and labeling your shipments following UPS guidelines can help avoid additional fees for special handling. Lastly, compare UPS shipping rates with other major carriers to ensure you are getting the best deal available.

Another way to reduce your UPS shipping costs is to take advantage of UPS’s online tools and resources. For example, using UPS’s shipping calculator can help you estimate the cost of your shipment before you send it, allowing you to make adjustments to your package or shipping method to save money. Additionally, signing up for UPS’s My Choice program can give you access to exclusive discounts and promotions. By utilizing these resources, you can further reduce your UPS shipping costs and save money on your shipments.

Comparing UPS with Other Major Carriers

It is essential to compare UPS shipping rates with other major carriers such as FedEx and USPS to ensure you get the best deal possible. It is also important to consider the distance and delivery speed you need, as different carriers have different strengths and weaknesses.

When comparing UPS with other major carriers, it is important to note that UPS offers a wider range of services, including international shipping and freight services. This makes it a better option for businesses that require shipping to multiple locations around the world.

Another factor to consider when comparing UPS with other major carriers is their customer service. UPS has a reputation for providing excellent customer service, with a dedicated team of representatives available to assist customers with any questions or concerns they may have. This can be particularly important for businesses that rely on timely and reliable shipping to maintain their operations.

The Impact of Dimensional Weight on Your Shipping Costs

Dimensional weight (also called DIM weight) is an essential factor to consider when shipping with UPS. It takes into account both the actual weight and the dimensions of the package when determining the final shipping cost. If you have a lightweight package with large dimensions, it will be charged as if it weighs more, which can significantly increase shipping costs. Be sure always to measure your packages accurately and understand the specific dimensional weight formula for your UPS service level.

It’s important to note that dimensional weight is not just a UPS-specific concept. Many other shipping carriers, including FedEx and DHL, also use dimensional weight to calculate shipping costs. This means that understanding and optimizing your package dimensions can have a significant impact on your overall shipping expenses, regardless of which carrier you use. Additionally, some carriers may have different dimensional weight formulas for different service levels, so it’s crucial to do your research and understand the specific requirements for each shipment.

How to Negotiate Lower Shipping Rates with UPS

If you ship frequently, it is possible to negotiate lower UPS shipping rates. To begin, analyze your shipping volume to determine if it qualifies for a special volume discount. Additionally, if you have a good payment history with UPS and a strong business relationship, you are in a good position to negotiate lower rates for your needs.

Another way to negotiate lower shipping rates with UPS is to consider using their alternative shipping options. UPS offers a variety of shipping services, such as UPS SurePost and UPS Ground with Freight Pricing, which may be more cost-effective for your business. Additionally, you can explore using UPS’s online shipping tools, such as UPS My Choice and UPS WorldShip, to streamline your shipping process and potentially qualify for additional discounts. By exploring these options and negotiating with UPS, you can save money on your shipping costs and improve your bottom line.

The Role of Fuel Surcharges in UPS Shipping Rates

Fuel surcharges are a standard fee added on top of UPS shipping rates to account for the cost of fuel. The surcharge is calculated based on the price of fuel and can fluctuate monthly, making it important to stay up to date on fuel surcharge rates when planning your shipments. Fuel surcharges help UPS maintain consistent shipping rates throughout the year, despite fluctuating fuel prices.

Changes to UPS Shipping Rates for 2020

There have been several changes to UPS shipping rates for 2020. For example, UPS has announced an average increase of 4.9% on all its services. Additionally, the rate increases are higher for certain types of shipments, such as those with large dimensions or to remote locations. It is crucial to stay up to date on any changes to UPS shipping rates to make informed decisions about your shipment plans.

How COVID-19 Has Affected UPS Shipping Rates and Delivery Times

The COVID-19 pandemic has caused significant disruptions to the shipping industry, including impacts on UPS. UPS has suspended its service guarantee for all shipments, including air and ground services. Furthermore, limited access to residential and commercial areas, additional safety practices, and an increased demand for home delivery have all impacted UPS shipping rates and delivery times. It is important to factor these changes into your shipping plans and discuss any concerns with your UPS representative.

Real-Life Examples of How to Save Money on UPS Shipping Costs

There are many real-life examples of how to save money on UPS shipping costs. For example, one company was able to negotiate a 30% discount on their UPS shipping rates by consistently using UPS as their primary carrier. Another company was able to reduce its shipping costs by using cheaper UPS services that fit their delivery timelines. These cost-saving measures demonstrate the effectiveness of understanding how UPS shipping rates work and utilizing all available discounts and options.

Best Practices for Packaging and Labeling Your Shipments with UPS

The proper packaging and labeling of your shipments is essential to avoid additional fees and ensure a smooth delivery. UPS has specific standards for packaging and labeling that must be followed to avoid surcharges or delays. For example, packages with loose items must be secured, and labels must be printed clearly and in the correct location. In addition, UPS offers specialized packaging to ensure your shipment is protected and arrives safely.

Understanding the Different Types of UPS Services Available

UPS offers several different types of services, each with varying delivery speeds and costs. Some of the main types include UPS Ground, UPS 2nd Day Air, and UPS Next Day Air. It is essential to understand the different UPS services available and choose the one that best fits your needs. It is also important to note that some UPS services, such as UPS Ground, offer package tracking information for free, while others, such as UPS Worldwide Express Freight, come with additional fees.

Conclusion

Understanding the 2020 UPS shipping rates and how they work is essential to optimize your shipping costs and improve your overall business performance. By familiarizing yourself with the various UPS services, observing the factors that influence shipping costs, and taking advantage of available discounts, you can reduce your UPS shipping expenses. Make sure always to stay up to date on any changes to UPS shipping rates, especially in times of disruption such as the COVID-19 pandemic, to ensure the most cost-effective and efficient shipping solutions for your business.