UPS Posts Positive Quarterly Earnings, And Forecasts A Strong Holiday Season
A United Parcel Service logo is displayed on a delivery truck on October 24, 2014 in San Francisco.  Photograph by Justin Sullivan—Getty Images

UPS Will Charge More for Holiday Season Deliveries

Jun 19, 2017

UPS (ups) wants retailers and their customers to pony up more money for their holiday season packages.

The delivery company on Monday announced a new 27 cent surcharge on all U.S. ground shipments to homes between Nov. 19 and Dec. 2, a period that includes the major Black Friday and Cyber Monday shopping occasions, and again from December 17-23 when business picks up again as procrastinators try to wrap up their Christmas shopping with a flurry of online shopping.

During that last week rush, UPS will also charge an 81-cent fee for next day air delivery, and 97 cents for two- or three-day ground delivery. (Those surcharges won't be applied in the Nov. 19-Dec 2 rush.)

The move comes as UPS tries to manage the huge surge in delivery volume during the holiday season, called "peak" in shipping industry parlance and avoid having its system overwhelmed, all the more important given the chaos that a snowstorm at that time of year can cause.

UPS's daily volume is about 30 million deliveries around Christmas time, compared to 19 million at other times, according to the Wall Street Journal. This year, eMarketer projects U.S. retail e-commerce sales will rise another 15.8% on top of 7.8% last holiday season.

This extra charge comes at a time retailers are trying to get customers to pick up more of their online orders in store. That helps retailers' already pressured margins but also gives them a chance to pick up more business from shoppers going to a store, not to mention better compete with Amazon.com (amzn) on speed. Kohl's estimated that one-third of online orders were picked up in stores last holiday season.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions