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UPS Slaps 'Peak' Surcharge On Amazon, Walmart, Others, As Delivery Requests Balloon Post Lockdown Ease

Neer Varshney

United Parcel Services Inc. (NYSE: UPS) is imposing an additional fee for delivery requests from e-commerce companies that is common during peak seasons, Reuters reported Thursday.

The move will come into effect on May 31 and apply to "large, high-volume shippers and companies that send oversized items," according to Reuters.

Major UPS clients include Amazon.com Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT), and Target Corporation (NYSE: TGT), and all these companies are likely to be affected by the latest policy.

The e-commerce companies have seen a sudden rise in business as authorities across the United States lifted the lockdowns and the companies are planning to restart deliveries of non-essential items.

Delivery services like UPS, or rival FedEx Corporation (NYSE: FDX), typically impose these surcharges during the holiday season shopping surge.

UPS and FedEx are also set to benefit from Amazon reportedly suspending its delivery service for third-party sellers on its platform starting June 1.

UPS Price Action

UPS shares closed 0.1% higher at $99.72 on Thursday and were mostly unchanged in the after-hours session.

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