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Will retailers pass along or eat COVID-19 shipping surcharges?

June 4, 2020

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It’s not unusual for United Parcel Service or FedEx to tack-on surcharges for retailers and consumer-direct brands shipping products during peak periods leading up to Christmas. Merchants do not, however, expect such charges in June. Of course, this June is unlike any June experienced by anyone ever.

UPS announced that it is adding a 30 cents per package surcharge to shipments from customers that exceed their average weekly volume in February by 25,000. An additional surcharge will be applied to oversized packages sent by companies that ship more than 500 packages a week. The nation’s largest parcel delivery service said that it has seen its mix of deliveries shift from around 50 percent going to individual households to around 70 percent since the coronavirus pandemic began in the U.S.

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