UPS to charge fee for holiday season packages

UPS to charge fee for holiday season packages

UPS to charge fee for holiday season packages

At various times throughout the year UPS must flex its delivery network to meet increased demand, including almost doubling its normal volume during the November and December holiday season.

Atlanta-based UPS, the world's largest shipping company, said residential packages, large packages and those exceeding system weight limits would face surcharges of up to 97 cents for two-day air services to residential addresses from December 17-23.

A fee of 27 cents will be added to ground residential deliveries from November 19 to December 2, and from December 17 to 23. UPS hired about 95,000 temporary workers during last year's holiday season.

UPS rose less than 1 percent to $110.73 at 12:45 NY.

"We're focused on helping our customers achieve success during some of their most important selling seasons", said UPS Chief Commercial Officer Alan Gershenhorn said in a release.

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If you were planning to do your holiday shopping from the comfort of home, scooping up bargains with a click, you should know that you may have to pay a little more this year since UPS is tacking on a holiday delivery surcharge during the busiest weeks of the year.

Still, its biggest customers, such as Amazon, typically negotiate rates that may differ from published rates. UPS said its second quarter profit almost doubled posting a net profit of $845 million, or 84 cents a share, compared to $445 million or 44 cents a year ago. But this is the first time UPS has published peak surcharges for USA domestic residential package deliveries.

The surcharges start the week of November 19 - Thanksgiving week - for ground shipments.

UPS in 2015 said it would begin levying peak surcharges for residential packages, after hiring more temporary employees than it had forecast to handle the 2014 holiday rush.

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