United Parcel Service on Monday said it would add a surcharge to deliveries during key holiday periods, including Black Friday and the week before Christmas, in a move that will impact the cost of online shopping.
In a first for the delivery company, UPS will charge “Peak” rates during certain periods: Between Nov. 19 and December 2., it’ll cost $0.27 per package for all ground shipments sent to residential addresses.
UPS will place a surcharge on all USA packages this holiday season to help cover its extra expenses caused by the holiday rush.
The surcharges start the week of November 19 – Thanksgiving week – for ground shipments.
UPS has worked closely with retailers to manage the peak season surge since struggling to do so in 2013 and 2014.
“We’re focused on helping our customers achieve success during some of their most important selling seasons”, Alan Gershenhorn, UPS Chief Commercial Officer, said in a press release. UPS’s daily volume is roughly 30 million deliveries during the holiday season, compared to 19 million at other times of the year.
The fee will be more for overnight, second or third day deliveries.
The large increases in the number of packages sent those weeks force the company to pay for additional capacity in airplanes and trucks bought at short-term premium rates, as well as paying for temporary facilities and seasonal help.
The changes puts retailers, who are struggling to adapt to a world where more people shop online, facing the prospect of either eating the higher charge or trying to recoup it by raising prices.
UPS also will introduce a levy on large packages and items that exceed size limits during the holiday season, the company said.