UPS set to again raise peak surcharges from China to the U.S.

After stating it would decrease COVID-19-Peak Surcharges from China mainland to the United States on October 4, global freight transportation and logistics services provider UPS said this week that those surcharges will be increasing, effective October 25.

UPS originally stated its intention to implement COVID-19-related Peak Surcharges in late May.

“Until further notice, certain U.S. domestic packages will be subject to one or more Peak Surcharges, as applicable,” UPS said in a customer update issued in late May. “As previously announced, a Peak Surcharge applies to certain international shipments from all origins to all destinations, including the U.S….until further notice. The Peak Surcharges applied to certain international shipments will continue to apply. Peak surcharges are subject to change and Peak Periods may be extended or otherwise changed.”

The company added that Peak Surcharges will apply to packages shipped during the specified Peak Periods for the origins, destinations, and service levels, adding that they apply in addition to all other applicable charges.

In a customer update issued this week, UPS said that Peak Surcharges applied to shipments from mainland China to the U.S.—for UPS Worldwide Express Plus, UPS Worldwide Express, and UPS Worldwide Saver—will increase from $0.79 per pound to $1.02 per pound, effective October 25. For the same period, UPS Worldwide Expedited will increase from $0.75 per pound to $0.98 per pound, with UPS Worldwide Express Freight and UPS Worldwide Express Freight Midday will each head up from $1.59 per pound to $1.81 per pound.

UPS also noted that peak surcharges applied to shipments from European origins to the U.S. and North America, for UPS Worldwide Express Freight and UPS Worldwide Express Freight Midday, will be $0.91 per pound, respectively, from November 1 until further notice.  

Jerry Hempstead, president of Orlando-based Hempstead Consulting observed that with public carriers having a responsibility to shareholders, surcharges have been announced with more regularity.

“This goes back to the increased demand,” he said. “A lot of the passenger flights have cargo capacity in the bellies, but passenger flights are gone and more stuff needs to move on flights from carriers like UPS, FedEx, Atlas Worldwide, and ATSG, and other air cargo operators. Service was already struggling, and once we get into Thanksgiving weekend, we are going to see it struggle some more. The message here is that you need to set expectations and cannot be making delivery promises, because the carriers eliminated their delivery guarantees some time ago, and we are not going to see it restored anytime soon.”