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Effective Jan. 8, UPS will follow FedEx by assessing its additional handling charge on any package whose longest side exceeds 48 inches, down from the previous 60 inches. UPS is also increase the over-maximum package charge from $110 to $150; items shipped by UPS Freight will be exempt from the charge.
As of Feb. 6, the U.S. fuel surcharge from UPS will be adjusted weekly, instead of monthly, another move that mirrors FedEx. On that same date, UPS's fuel surcharge on imported shipments will increase and be assessed independently of the U.S. air and export fuel surcharge.
“Costs are going up significantly for shippers, and the 2017 general rate increase (4.99 percent for both UPS and FedEx) is once again among the highest in history,” said Rob Martinez, president of parcel negotiation firm Shipware. “Moreover, the published rates, accessorial charges, DIM policies and fuel surcharges will not align between FedEx and UPS, making it difficult for many shippers to have an accurate, true comparison between the two.”
Martinez said UPS was right to assert that the under 1 cubic foot exemption from the new DIM factor was a price advantage on a significant number of packages. An October query of Shipware customer shipments found 41.5 percent of packages were equal to or less than 1 cubic foot.
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