Understanding Shipping Surcharges: A Comprehensive Guide

As an e-commerce seller, understanding shipping surcharges is crucial for managing your business effectively. In this guide, we'll break down everything you need to know about shipping surcharges, why they occur, and how to minimize them.

What Are Shipping Surcharges?

Shipping surcharges are additional fees applied by carriers when there's a discrepancy between the declared package specifications and the actual measurements. These adjustments ensure accurate billing for shipping services.

For more details, please refer to the official UPS Additional Handling Guidelines.

Common Questions About Surcharges

Why Do I Receive Multiple Surcharges at Once?

Surcharges are processed in batches as received from carriers. While this might seem overwhelming, it's simply a matter of timing rather than multiple surcharges per shipping label/shipping issue. These adjustments typically appear 30-60 days after shipment.

How Are Surcharges Calculated?

The surcharge amount is calculated as the difference between what the shipping label would have cost based on the audited weight and dimensions, minus the amount already paid. While most adjustments result in additional charges, you may occasionally receive credits when packages are lighter or smaller than declared.

What does ‘Additional Handling Charge’ refer to?

UPS may apply an Additional Handling charge to shipments that exceed specific size, weight, or packaging standards. This surcharge typically applies if a package’s longest side exceeds 48 inches, the second-longest side exceeds 30 inches, or if the combined length and girth (calculated as the longest side plus 2×width + 2×height) exceeds 105 inches. Weight is another factor — packages over 50 pounds domestically or 70 pounds internationally may also incur this fee. Additionally, irregular packaging can trigger the charge, especially for items not fully encased in corrugated cardboard (like barrels or drums) or soft-sided packs (such as poly bags or bubble mailers) that exceed 18 inches (longest side), 14 inches (second-longest), or 6 inches in height. For more details, please refer to the official UPS Additional Handling Guidelines.

Tips to Avoid Surcharges

• Weight: Always report the accurate weight of your package, rounded up to the next whole pound, to align with how UPS and USPS determine weight. Weight measurements should also include all packaging, including the shipping box. Example: If your package weighs 7.2 lbs, enter 8 lbs, not 7 lbs.
• Dimensions: Provide precise dimensions. Dimensional (volumetric) weight may apply, and underreporting can result in surcharges. Carriers usually round up to the nearest inch, so we recommend doing the same. Example: If your box measures 5.5 x 5.5 x 5.5 inches, report it as 6 x 6 x 6 inches.
• Use appropriate packaging to minimize dimensional weight charges
• Keep detailed records of your shipment specifications
• UPS Checking Shipping Dimensions & Weight

Tracking and Managing Surcharges

You can monitor surcharges through your balance history, where they appear as "Shipping Cost Adjustment" or "Shipping Cost Adjustment Rebate." If you notice any discrepancies, don't hesitate to request a detailed investigation of specific tracking numbers.

Best Practices for Shipping

To minimize future surcharges and maintain efficient shipping operations:

• Invest in accurate weighing and measuring equipment
• Document your packaging process with photos when possible
• Maintain consistent packaging standards
• Stay informed about carrier policies and requirements

Final Thoughts

While shipping surcharges can be frustrating, understanding their nature and taking proactive steps to prevent them can significantly improve your e-commerce operations. Remember that accuracy and consistency in your shipping practices are key to minimizing additional costs.