U.S. Markets closed

UPS to Refrain From Delivery Surcharges for 2019 Peak Season

Zacks Equity Research

In a bid to enhance customer experience, United Parcel Service, Inc. UPS recently announced that it will not levy additional surcharges on U.S. residential deliveries (barring contractual exception) during this year’s peak holiday season.

However, the company will be adding special peak surcharges on packages that are over-maximum, large or require special handling. Packages with abnormal dimensions requiring special handling will be levied with an additional handling surcharge between Nov 24, 2019 and Jan 4, 2020. Moreover, between Oct 1, 2019 and Jan 4, 2020, UPS will enforce a surcharge on packages that are recognized as ‘Large’ under UPS’ Tariff or those that are beyond the company’s accepted network size and weight limits.

It is worth noting that in the past two years when UPS added surcharges on residential packages during the holiday season, its rival FedEx Corporation FDX did not follow suit. This year, UPS is perhaps trying out FedEx’s holiday season strategy. Meanwhile, we are yet to hear from FedEx regarding the peak shipping season surcharges.

Anticipating a large number of deliveries during the peak season, UPS has added 20 747-8 and 767 aircraft as well as updated its processing and delivery facilities. Moreover, as part of a capital investment plan, the company is enhancing its air and ground capacity.

United Parcel Service, Inc. Price

United Parcel Service, Inc. Price

United Parcel Service, Inc. price | United Parcel Service, Inc. Quote

Zacks Rank & Key Picks

UPS carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX and Delta Air Lines, Inc. DAL. While Delta sports a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of GATX and Delta have gained more than 6% and 16% so far this year, respectively.

Legalizing THIS Could Be Even Bigger than Marijuana

Americans spend an estimated $150 billion in this industry every year… more than twice as much as they spend on marijuana.

Now that 8 states have fully-legalized it (with several more states following close behind), Zacks has identified 5 stocks that could soar in response to the powerful demand. One industry insider described the future as “mind-blowing” – and early investors can still get in ahead of the surge.

See these 5 “sin stocks” now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
GATX Corporation (GATX) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
FedEx Corporation (FDX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research