UPS May Discontinue Oversize Shipping Discounts
UPS has announced that it plans to end discounts on oversize packages during the holiday season, and possibly year round. The Atlanta Business Chronicle reported that as orders for larger items have increased, UPS has experienced issues with delays and backups. Now without the discount that many retailers enjoyed, some customers could be required to pay shipping charges upwards of $57.
Consumerist reported that when ordinary customers ship an oversize package, UPS usually automatically factors in a surcharge of $57.50 for shipping. UPS also sometimes factors "dimensional weight" into the shipment, which means it charges for the amount of space the particular item takes up in a truck, rather than just the weight.
Currently, a 50 lb. oversize package costs retailers approximately $29 to ship with UPS, but if UPS discontinues the discounts like it said it could, that shipment will come with a $57.50 surcharge, and with the dimensional weight factored in, the parcel would be charged as a 90 lb. item.
This news comes after UPS experienced record delivery volume during the holiday season in 2014, and missed delivery deadlines due to weather and a surge in online shopping in 2013.
UPS said that it will deal with each retailer individually, and may have to renegotiate contracts.