On Thursday, UPS said as of Nov. 2 it will charge an additional $52.50 for those larger and heavier packages and raise fuel surcharges to 5.25%, from 4.75%, for ground shipping and to 4.50%, from 3%, for air and international shipping.
Currently, UPS charges $57.50 for oversize packages.
UPS has struggled to meet demand—and delivery dates—during the most recent holiday seasons. In 2013, an unexpected surge of online orders overwhelmed its system. Last year, it over-prepared and productivity plummeted.
This time, UPS approached retailers over the summer, alerting them that it planned to charge more for those packages and lower or eliminate discounts and waivers on those extra charges that had been negotiated, typically based on volume assumptions.
And on Jan. 4, it will start charging a 2.5% service fee to packages that are billed to someone other than the shipper or recipient.
Shares, down nearly 7% this year, edged up 0.19% to $104 in late trading.