As of May 22, there is a new UPS delivery surcharge of $0.30 on each package sent via standard ground service from the U.S. to Canada. Expedited services are seeing a steep increase under the peak demand surcharge pricing. According to the company, the price increase is driven by shipment demand into Canada.
This UPS delivery surcharge is based on an increase in demand. With recent reports of uncertain consumer spending and high inflation in the U.S., this change could be a signal noting potential strength for your goods in Canada. It might be time to investigate if you have a potential audience across the border. It might even offset UPS surcharge increases and other costs.
Breaking down the UPS delivery surcharge
UPS has also increased its “peak/demand surcharge” for all packages shipped from the U.S. to Canada, based on the billable weight of the shipment. This excludes UPS Standard shipments, where the company is applying the flat $0.30 increase.
According to UPS’ published information, its updated service level charges for “all packages shipped from the U.S. to Canada until further notice” look like this:
U.S. to Canada Surcharge Update
Price increases focus on a per-pound increase for express and rapid services. Remember that these are based on billable weight. So, you could be looking at an increase in physical or dimensional weight. Be sure to use a dependable DIM weight calculator. That way, you know you’re looking at the right weight before you make projections about how this UPS delivery surcharge will impact your business.
The fee structure is listed as “until further notice,” and there’s a chance it will push until the next peak season. This step increase may become the norm if demand causes UPS to increase rates further in Q4. The company’s updated surcharge list also notes other areas of cost changes. For example, shipping from the U.S. to Australia or New Zealand incurs a $0.75 per lb. or $1.50 per lb. surcharge on expedited services.
UPS still suggests you rely on its 2022 Rate and Service Guide if you’re shipping within Canada. The company’s page on rate changes and updates also offers downloadable rate charts to help you plan for shipment costs beyond this UPS delivery surcharge.
Start your Q4 planning now
The UPS delivery surcharge move wasn’t unexpected, and it follows a broader trend of price increases for supply chain services. Nearly everything seems to be costing more these days. So, it’s time to begin planning for additional costs regardless of which carriers you use.
We suggest you start by talking with your client success manager about what options may be available, such as exploring other service methods or potentially adding other carrier options to your mix. As 2022 marches on, you’ll likely face cost increases in a variety of areas as you manufacture, import, and ship your goods. Your Red Stag success manager is here to help you stay informed and available to update or adjust plans as your business needs change.
When you’ve got a question, we want to be the partner you ask. That’s true for changing carrier costs or shifting fuel surcharges, concerns about ports, or questions on the general state of the eCommerce industry. It’s a complicated logistics world, and Red Stag is here to help by offering a more comprehensive look at the world stage and domestic changes. Get started learning more about these efforts by reading this Q2 2022 look at Freight Rates and Fuel Surcharges from Lorrie Watts, Director of Logistics at Red Stag Fulfillment.