The surcharges, which apply only to residential deliveries, could boost the buy-online-pickup-in-stores (BOPIS) strategy deployed by many store-based retailers. The move comes as the shipping giant look to combat its escalating costs, which include increased investments in hiring, in the wake of the shipping boom caused by rising online package volumes.
The holiday price increases include a 27 cent surcharge per package on UPS’ ground service from Nov. 19 to Dec. 2, and from Dec. 17 and Dec. 23. 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 Dec. 17-23. (A chart detailing the surcharges is at end of story.)
“We’re focused on helping our customers achieve success during some of their most important selling seasons,” said Alan Gershenhorn, UPS chief commercial officer. “To meet their requirements, UPS flexes its delivery network to process near double our already massive regular daily volume, and that creates exceptional demands.”