UPS Announces New Rates

UPS is rolling out significant changes to its invoicing and payment processes in 2025, introducing new fees and adjustments that could impact shippers’ operational costs. These changes are part of an effort to modernize payment processing and encourage using electronic payment methods.

For businesses that rely on UPS for shipping, these updates mean increased costs for those still using traditional payment methods like checks and printed invoices. Shippers who have not yet transitioned to digital payment options may need to rethink their billing processes to avoid additional fees. Here’s a breakdown of what’s changing and how it may affect your business.

📆 Effective March 10, 2025

⛽ Fuel Surcharge Adjustments

Changes will affect U.S. Ground Domestic, UPS SurePost®, and U.S. Domestic Air Fuel Surcharges.

Impact:Fuel surcharge increases can significantly impact shipping costs, particularly for businesses that move high volumes of goods. Shippers should review their contracts and explore cost-saving measures such as optimizing packaging, consolidating shipments, or negotiating rates.

Source: UPS Fuel Update

📆 Effective March 31, 2025

💵 Print Invoice Fee

A $5.00 charge per printed invoice copy will apply.

Impact: Businesses that rely on physical invoices for record-keeping or accounting may see an increase in administrative costs. Companies should consider switching to digital invoicing to avoid this fee.

💵 Check & Wire Transfer Fee

A $25.00 fee per transaction will be applied to check or wire transfer payments. ACH payments will not be affected.

Impact:Shippers who prefer traditional banking methods for security or workflow reasons may find this a costly change. Transitioning to ACH payments can help avoid these added expenses.

💵 Late Payment Fee Increase

The late fee will rise from 8% to 9.9% of the total past-due invoice balance, including past-due late fees.

Impact:Businesses managing tight cash flow should be mindful of payment deadlines to avoid higher penalties. Late payments will now be even more costly, making it crucial for companies to streamline their payment processes.

📆 Effective May 18, 2025

💵 New Payment Processing Fee

A 2% fee will be added to invoices for all non-shipping charges.

Impact:This additional charge could lead to increased operational costs for businesses that incur various service fees beyond basic shipping. Shippers should review their invoices closely to assess the impact and consider minimizing optional services where possible.

💳 Credit Card Surcharge Removal

UPS will eliminate the existing credit card surcharge.

Impact:Businesses that prefer to pay invoices by credit card will no longer face additional fees, making credit card payments a more attractive option for managing cash flow and earning rewards.

Source: UPS Shipping Cost & Rates

How Shippers Can Prepare

1. Transition to Digital Payments: Avoid unnecessary fees by switching to ACH payments and digital invoicing.
2. Optimize Shipping Costs: Reassess fuel surcharge changes and look for ways to minimize their impact through smarter shipping strategies.
3. Review Payment Terms & Improve Cash Flow: Ensure timely payments to avoid the increased late fees and explore automation options for invoice processing.
4. Monitor Invoice Details: With the new 2% payment processing fee, businesses should closely analyze invoices to identify areas where they might reduce costs.
5. Partner with Expert Consultants: Collaborate with a trusted expert who can optimize your shipping costs and keep your business competitive.

Partnering with the experts at ebb Logistics ensures that your business stays ahead of these changes with proactive planning and strategic cost-saving solutions. Our experienced ebb Consultants will work closely with you to navigate new fees, optimize your shipping strategy, and implement solutions that will minimize the financial impact while keeping your shipping operations efficient and cost-effective in 2025 and beyond.

Contact Us Today!