UPS is breaking precedent and adding a surcharge to deliveries it conducts for large retailers such as Amazon, Target, and Best Buy as it grapples with an increase in packages being delivered to homes during the coronavirus pandemic.
According to The Wall Street Journal, the delivery giant will add 30 cents to what it charges retailers for UPS Ground and SurePost shipping. For large packages such as desks and trampolines, UPS will add a surcharge of $31.45.
UPS typically adds surcharges to packages shipped during the holiday season; they will kick in once again on May 31. The Journal noted that this marks the first time surcharges such as these have been instituted outside of the holiday season.
The 30-cent charge will be added after retailers ship more than 25,000 packages above their weekly average in February. The fee on large packages will kick in after retailers ship more than 500 large parcels per week.
UPS SurePost applies to packages that are dropped off to local post offices, which then deliver the items to their destination.
The Journal noted that 70% of UPS deliveries have been to homes in recent weeks, compared to 54% during 2019.
The U.S. Postal Service, meanwhile, lost $4.5 billion in the first quarter of the year and said it needs financial assistance from Congress as the coronavirus pandemic continues to affect nearly every sector of the economy.
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