UPS Hates Coming To Your House, To Begin Tacking On Surcharges For Residential Delivery 
 
 Last week, in advance of its quarterly earnings report, UPS admitted that it over-spent on holiday shipping in 2014 and that it wouldn’t make that mistake again . Today, with those quarterly earnings announced, the company announced how it’s going to make back some of its money — by tacking on surcharges for residential deliveries. 
 
 The surcharges aren’t something that you’ll see immediately applied everywhere, but will be rolled out as UPS renegotiates its shipping contracts with its largest customers, reports Reuters. 
 
 “These pricing strategies will be designed to ensure we are properly compensated for the value we provide,” explained UPS CEO David Abney. 
 
 So why put a surcharge on residential deliveries? 
 
 According to UPS, because you’re usually only bringing a single package to a home while many businesses receive multiple parcels each day, these home deliveries cost three times what it costs to make deliveries to businesses. 
 
 As companies renegotiate their deals with UPS, expect to see fewer free shipping offers or for e-tailers to increase their minimum orders for free shipping. 
 
 You should also expect to see a push toward centralized delivery locations, like the Amazon Locker depots that are set up in retail locations like 7-Eleven stores. These allow shippers to bring multiple parcels to one spot where customers can pick them up at their leisure. Don’t be shocked to see Amazon try to make these more attractive, especially for Prime subscribers, and other companies attempt to replicate this model. 
 
 After a dismal 2013, in which weather and consumers’ growing love of e-commerce conspired to leave more than a million parcels undelivered by Christmas day, UPS went all-in for 2014, sinking hundreds of millions of dollars into improvements and hiring around 100,000 seasonal workers. And while it all meant that packages were delivered in time for the holidays, there wasn’t enough business for UPS to ultimately recoup those expenses. 
 
 “UPS customers were delighted with the high quality service we delivered during the holiday season,” said Abney in a statement. “However, the financial results were below our expectations.” ||||| United Parcel Service Inc. will place its first holiday-season surcharges on U.S. packages, as the world’s largest package-delivery company seeks to defray a surge in year-end costs. 
 
 A fee of 27 cents a package will be levied on deliveries by the residential ground network on certain weeks in November and December, UPS said in a statement Monday. Parcels sent to homes using next-day air will see an additional charge of 81 cents in the week ending Dec. 23, while shipments through the deferred network will incur a per-package fee of 97 cents. 
 
 The new charges are needed to help pay for additional holiday capacity in airplanes and trucks purchased at short-term premium rates, as well as to offset the cost of temporary facilities and seasonal help. UPS hired about 95,000 temporary workers during last year’s holiday season. 
 
 “It’s about having the customers who generate those extra costs pay for it,” said Satish Jindel, founder of SJ Consulting Group in Sewickley, Pennsylvania. He said FedEx Corp. is likely to follow suit on peak-season fees. 
 
 UPS should have adopted the approach in 2014, following a disastrous 2013 holiday season in which it failed to deliver thousands of packages ahead of Christmas, Jindel said. The biggest shippers make their own contracts with Atlanta-based UPS and wouldn’t necessarily pay the peak surcharge, but everyone else can get around it by avoiding the busiest period, Jindel said. 
 
 Price Increase 
 
 UPS rose less than 1 percent to $110.73 at 12:45 p.m. in New York. The shares dropped 3.5 percent this year through June 16 compared with a 9.5 percent gain for an S&P 500 index of industrial companies. 
 
 On average, UPS collected $7.97 a package shipped through its U.S. ground-delivery division last year. So the 27-cent surcharge on each item represents an increase of about 3.4 percent. 
 
 “With the new peak charge, per-package costs for many shipments will only marginally increase during this very busy time of the year,” Chief Commercial Officer Alan Gershenhorn said. 
 
 The new fees will pertain to certain weeks starting on Nov. 19, with no charge for residential ground-shipped packages during the two-week period from Dec. 3 to Dec. 16. All residential packages sent by air or ground will incur a surcharge in the week ended Dec. 23. UPS also will introduce a levy on large packages and items that exceed size limits during the holiday season, the company said. 
 
 FedEx declined to comment about any actions it may take on pricing. The company reports earnings on Tuesday. ||||| Attention Holiday Shoppers: UPS To Add Delivery Surcharges 
 
 Enlarge this image Mark Lennihan/AP Mark Lennihan/AP 
 
 The first day of summer doesn't begin until Wednesday but United Parcel Service already is looking ahead to the colder seasons with plans to charge retailers an extra fee for orders placed around Black Friday and Christmas. 
 
 And consumers could end up carrying that extra weight if retailers decide to pass on the cost by raising shipping fees. 
 
 Online shopping has become so successful that UPS and other delivery services are a fundamental service that keeps the retail season moving. On a normal daily average, UPS handles 19 million packages. During the peak holiday season, that number jumps to more than 30 million packages a day. 
 
 UPS says to meet demand, it's had to add planes, trucks and thousands of employees. The company claims the surcharges are necessary to offset the additional cost of delivering all those holiday packages. 
 
 Between Nov. 19 and Dec. 2 this year, UPS says it will add a 27-cent charge on all ground packages sent to homes. Those dates include Black Friday, which is Nov. 24, and Cyber Monday, which is Nov. 27. 
 
 Consumers then get a two-week reprieve from the additional charge, but the fee makes a comeback to usher in the final holiday rush. 
 
 UPS says from Dec. 17 to Dec. 23, it will charge an extra 27 cents for each ground shipment, 81 cents for next-day air and 97 cents for two- or three-day delivery. 
 
 The delivery fee could backfire on UPS, as The Wall Street Journal reports: 
 
 "Patrick Gill, chief executive of the high-end fishing gear site TackleDirect.com, said news of the surcharge was frustrating since it is going to be applied when his site needs lower rates to compete against Amazon.com , Wal-Mart Stores and others. "This will add up to be another unaccounted for expense during the holiday season," Mr. Gill said. "It will force us to push some product away from UPS in some cases." 
 
 A possible way around the surcharge could be the ship-to-store option. Because businesses generally receive more deliveries, the cost per package is typically lower. 
 
 The holiday season will be here in no time. Why not start that shopping list now? Surely someone you know needs a tacky summer vacation souvenir.
– It wasn't a very happy holiday season for UPS—for the second year in a row. In 2013, the company landed in hot water over an unexpected surge in gifts needing delivery, resulting in some 1.3 million packages that weren't delivered by Christmas Eve. This year, things went the opposite direction: The company hired an extra 100,000 seasonal workers, Consumerist notes, but the uptick in business didn't quite pan out as hoped. The result of all this is new costs for consumers. UPS plans a surcharge for residential deliveries, set to take effect over the course of a few years, Reuters reports. "We absolutely will charge our customers more for the extra costs that we had in peak," CEO David Abney tells the Wall Street Journal. Home deliveries can place a special burden on the company, it says, because homes typically get just one package at a time, whereas a business might receive a pile. Customers may end up seeing higher shipping costs at online retailers, as well as more emphasis on pickup locations like Amazon Lockers in retail stores, Consumerist notes.