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Tendering shipments correctly is more important than ever for UPS shippers

UPS implemented an additional fee for mislabeled packages that must be corrected and Over Maximum Limits and Oversize Pallet Handling surcharge

Shippers who use UPS have a set of mid-year rate changes to be aware of. While you were busy planning your summer vacation, the shipping giant was busy planning how to increase its rates.

On June 4, UPS’ second wave of rate hikes went into effect by implementing an additional fee for mislabeled packages.  In addition, Over Maximum Limits and Oversize Pallet Handling surcharges will increase by $150. That’s not the end of the rate increases. On June 11, UPS rolled out a 0.50% increase on the Ground Fuel Surcharge for all thresholds. The month of July brings a Large Package Surcharge of $90 for packages delivered to residential addresses.

Why are surcharges on large shipments increasing?

Online shopping continues to skyrocket. With a tap of your finger, you can purchase a trampoline or treadmill. These oversized, bulky purchases congest UPS’ network and contribute to logistical issues. UPS continues to hike its rates to discourage oversized, heavy shipments because they require additional handling and planning. Customers will be monetarily punished for shipping oversized items.

What happens if I mislabel my UPS package?

If you ship with UPS, tendering shipments accurately is more important than ever.  If you fail to provide dimensions, provide incorrect dimensions or provide inaccurate weights you could be hit with a new charge on your UPS invoice.

Shippers must be vigilant to record accurate weights. Most shipments are processed through scanners that weigh the package and scan the dimensions too. Until June 4, rate adjustments to these packages were free. Now, UPS is cracking down on shippers and charging an audit fee as a consequence to customers who are frequently sending mislabeled packages.

Here’s what we know so far about the rate changes according to UPS:

UPS rate increases and Shipping Charge Correction Audit fee• The Large Package Surcharge for any U.S. Domestic package delivered to a residential address will be $90

What can shippers do to stop the surcharges?Review your product and its packaging to make sure it’s being correctly dimensionalized.

As always, the impact of rate changes differs based on your unique shipping profile and current carrier contract. Surcharges will always exist, but you don’t have to fall victim to surcharge surprises. The first step would be to proactively remove large shipments from your network. Check your recent invoices to see if you’ve been charged for any Over Maximum Limit packages. Review your product and its packaging to make sure it’s being correctly dimensionalized. Take the time to talk to our carrier agreement optimization experts to find areas to significantly lower rates. Share a Refund is on your side.

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