The United Parcel Service is getting ready for yet another session of increased delivery orders. The company reached the peak of its industry as a global logistics organization. UPS has to manage approximately 15 million delivers each day. On top of that, it serves 7.9 million clients from 220 different countries. Nonetheless, UPS is going to impose higher fees for upcoming holiday shopping sessions.
UPS to Introduce First U.S. Holiday Shopping Surcharges This Winter
Currently, the largest package-delivery organization in the world is struggling with an implosion of year-end costs. To cover some budget holes, UPS decided to introduce the first holiday season extra charges in the U.S. only. Even though the summer has just begun, the company has to think ahead to organize a complex system for the busiest period of the year, winter holidays.
Therefore, UPS is going to charge 27 cents more on orders within residential areas. This surcharge will be active only during certain weeks in November and December. However, the costs will be bigger for same-day delivery services. People are going to cover an extra fee of 81 cents but only on the week ending December 23. As for shipments achieved through deferred network, the surcharge will be of 97 cents.
Other Industry Competitors Might Follow Suit
The founder of SJ Consulting Group in Pennsylvania, Satish Jindel, considers this move as a necessary strategy to cope with holiday shopping. On top of that, he believes that other competitors would resort to similar decisions in a short time.
“It’s about having the customers who generate those extra costs pay for it.”
The recent changes have the sole goal to allot extra airplane and truck spaces to meet the high demand during the winter season. During this period, the company is also depending on temporary help to deal with the massive increase in orders. For instance, last year there were 95,000 temporary positions for UPS only to aid the company to overcome these challenges.
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