In this episode of Parcel Perspectives, Glenn Gooding breaks down a key update to UPS’s Additional Handling Charge (AHC), now set to be implemented on August 17 (postponed from the originally expected June 1).
Instead of applying the fee based on length and girth, UPS will now use volume: any package over 8,640 cubic inches, or five cubic feet, will automatically trigger AHC. That means even lightweight, efficiently packed boxes may see significant cost increases.
Glenn walks through how this affects shippers in real terms, including a pricing example where transportation costs jump nearly 200%. He also explains why many businesses may not be able to quantify the impact -- UPS invoices often lack the dimensional data needed to catch these charges in advance.
The episode closes with broader considerations, including how other carriers might respond and what this shift could mean for packaging strategy, bundled shipments, and shipping subsidies.
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