UPS adds delivery surcharges due to increased shipping amid COVID-19

Friday 29 May 2020 11:58 CET | News

UPS has announced adding delivery surcharges on US ecommerce companies that have submerged its delivery network with shipments.

According to Reuters, starting from 31 May 2020, UPS will add surcharges on US ecommerce companies that have flooded its delivery network with shipments since the COVID-19 pandemic. Such fees are common during the winter holiday season when package volumes double. Accordingly, shifting to online shopping resulted in what many call a ‘second Christmas’ for companies like UPS, FedEx, and Amazon.  

Therefore, the new fees are likely to affect large, high-volume shippers along with companies that send oversized items, and may drive up costs at a time when many retailers are fighting to shelter profits. Moreover, since the beginning of the pandemic, home deliveries surged more and more, with 70% shipments being made in April 2020 versus around 50% previously, thus resulting in UPS raising the costs. 

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Keywords: UPS, US, ecommerce, COVID-19, online shopping, FedEx, Amazon, shipment surcharges
Categories: Payments & Commerce
Countries: United States
This article is part of category

Payments & Commerce