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UPS drives up retailers’ delivery costs

May 2, 2017

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United Parcel Service is instituting new charges that apply when retailers don’t ship the number or size of packages they said they would, The Wall Street Journal reports. The policy would be implemented on a case-by-case basis, UPS CEO David Abney told the Journal in an interview.

The new policy isn’t so much a punishment as an element of new and ongoing negotiations with larger retailers aimed at smoothing the shipper’s deliveries, especially at peak times, in an era of increased e-commerce sales and deliveries, according to the report.

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