UPS Increases Its Oversize Package Fees: What You Need to Know

The world’s largest package delivery company, UPS, has announced an increase in fees for oversize packages. Effective December 29, 2019, these new rates will affect both domestic and international shipments.

How UPS’s Oversize Package Fees Have Changed

The increase in oversize package fees is not uniform across all UPS services. Ground, Air, and International fees vary in amounts depending on the nature of the package. For instance, Ground package fees will go up by $3, while Air services will have an increase of $5 per package. Oversized international packages, on the other hand, could now cost $120 more than before, depending on the destination.

It’s important to note that these changes in oversize package fees are part of UPS’s efforts to manage the increasing costs of handling larger packages. The company has seen a significant rise in the number of oversize packages being shipped, which has led to additional expenses in terms of transportation and handling. By implementing these fee changes, UPS hopes to encourage customers to consider alternative packaging options or to pay the additional fees for the added costs of handling these larger packages.

Additionally, UPS has also introduced new technology to help customers better manage their oversize packages. The company’s new “dimensional weight” system uses advanced algorithms to calculate the most efficient way to pack and ship packages, taking into account both weight and size. This technology can help customers avoid oversize package fees by optimizing their packaging and reducing the overall size of their shipments.

What Qualifies as an Oversize Package According to UPS

According to UPS, an oversize package is one whose length plus girth exceeds 130 inches, whereas the maximum length allowed for some destinations is 108 inches. Any package that is – or exceeds – these limits automatically qualifies for oversize rates, which are subject to additional fees.

It is important to note that UPS also has weight restrictions for oversize packages. Any package weighing over 150 pounds will automatically be considered an oversize package, regardless of its dimensions. Additionally, UPS may apply additional handling fees for packages that require special equipment or handling due to their size or weight.

The Impact of UPS’s Oversize Package Fee Increase on Small Businesses

Online retailers and small businesses are the ones who may feel the pinch of these new fees the most. Oversize packages, such as bulky furniture and equipment, have always been a challenge for small businesses, and the increase in fees may pose a financial strain. However, UPS has assured customers that it has been making infrastructure investments to offset the impact of the fee change.

Despite UPS’s efforts to mitigate the impact of the oversize package fee increase, small businesses are still concerned about the potential financial burden. Some businesses may have to pass on the additional costs to their customers, which could lead to a decrease in sales. Others may have to find alternative shipping options, which could be more time-consuming and less convenient. It remains to be seen how this fee increase will affect the small business community in the long run.

How to Calculate the Cost of Shipping an Oversize Package with UPS

Calculating the cost of shipping an oversize package with UPS is more complicated than just checking the standard rates. As mentioned before, the new fees vary depending on destination, weight, and size of the package. Additionally, the surcharges may apply as well. Therefore, customers can use the UPS calculator to determine their new shipment fees accurately.

It is important to note that UPS also offers additional services for oversize packages, such as liftgate services and inside delivery. These services come at an extra cost, but they can be helpful for customers who need assistance with the delivery of their package. Customers can select these services when using the UPS calculator to get an accurate estimate of their shipment fees.

Tips for Reducing the Cost of Shipping Oversize Packages with UPS

Small businesses and online retailers can save costs by keeping packages as lean as possible. For instance, using collapsible or stackable packages could reduce the size, as well as using better packaging materials that offer extra protection, but that do not add to the overall weight of the package. Alternatively, businesses could consider using freight or cargo services that are more cost-effective for oversize packages.

Another way to reduce the cost of shipping oversize packages with UPS is to take advantage of their shipping discounts and promotions. UPS offers various discounts and promotions throughout the year, such as discounts for volume shipping or free shipping for certain products. Small businesses and online retailers should regularly check UPS’s website or sign up for their email newsletters to stay updated on these offers and take advantage of them.

Alternatives to Shipping Oversize Packages with UPS

Hybrid services, such as ShipHawk, offer a cost-effective solution for small businesses that ship oversize packages frequently. These companies work with major carriers like UPS, FedEx, and USPS, among others, to provide competitive pricing, negotiated rates, and specialized shipping solutions. Hence, businesses of all sizes can find the right shipping service that matches their budget and shipping preferences.

In addition to hybrid services, businesses can also consider using freight shipping companies for oversize packages. Freight shipping companies specialize in transporting large and heavy items, and they offer a range of services, including less-than-truckload (LTL) and full truckload (FTL) shipping. While freight shipping may be more expensive than traditional carriers like UPS, it can be a more cost-effective option for businesses that frequently ship oversize packages.

How Other Shipping Companies’ Oversize Package Fees Compare to UPS’s

Other major shipping companies, such as FedEx and USPS, have also increased their oversize package fees. FedEx’s new rates became effective on January 6, 2020, and similarly increased its oversize rates by applying them to more packages. USPS, which is known for its more affordable shipping options, introduced a new tier for oversize packages in June 2019, but it remains relatively lower than UPS’s new fees.

It’s important to note that oversize package fees are not the only fees that shipping companies charge. Additional fees, such as fuel surcharges and residential delivery fees, can also add up quickly. It’s important to compare the total cost of shipping when choosing a carrier for your package.

Some shipping companies also offer discounts for certain types of packages or for frequent shippers. It’s worth exploring these options to see if you can save money on your shipping costs.

Understanding the Reasoning Behind UPS’s Oversize Package Fee Increase

The rationale behind the rate increase is that oversize packages take up more space and capacity and require more handling during transportation. UPS has been struggling to manage this package category as it increased by more than 22% year-on-year. Hence, the new fees are designed to ensure that every package – irrespective of its size – is priced competitively and helps UPS maintain the quality of service it’s known for.

Additionally, the oversize package fee increase is also aimed at encouraging customers to optimize their packaging and reduce waste. By charging more for oversized packages, UPS hopes to incentivize customers to use smaller, more efficient packaging that takes up less space and is easier to handle during transportation. This not only benefits UPS but also helps to reduce the environmental impact of shipping by minimizing the amount of packaging material used and the carbon emissions associated with transportation.

What This Means for Consumers: Will You Pay More for Online Shopping?

The answer is yes; consumers who frequently shop online for oversize items may be affected. Unfortunately, the rising cost of shipping often gets transferred to customers one way or the other, so businesses could choose to pass these fees on to the end-users. Other retailers could absorb the cost and reduce their profit margin, but these decisions ultimately depend on the individual businesses.

In conclusion, the oversize package fee increase by UPS is designed to ensure better-quality services for all customers. While the hike in fees may seem steep at first, businesses and consumers can work with various shipping solutions to keep their costs under control – ultimately benefiting both the businesses and their customers.

However, it is important to note that not all online shoppers will be affected by this fee increase. Customers who purchase smaller items or items that do not require oversize packaging will not see a change in their shipping costs. Additionally, some businesses may choose to absorb the cost of the fee increase in order to remain competitive in the market. It is important for consumers to compare prices and shipping options before making a purchase to ensure they are getting the best deal possible.