UPS rolls out new shipping option for high-value or sensitive deliveries
Worried about your package disappearing from your porch this holiday season?
Sandy Springs-based UPS has added a new shipping option with an added layer of security for high-value or sensitive deliveries, as it scales up its operations to meet demand during its peak season, according to a Wednesday announcement.
The new option, called Protected Delivery, requires recipients provide a PIN to a driver before they can receive a package. It’s an add-on service available with any UPS shipping option, including Ground and Next Day Air, and will cost $10.70 per package. The PIN will be generated by either UPS or the shipper and shared directly with the recipient, a UPS spokesperson said.
UPS has invested heavily in adding new capabilities and digital tools over the past few years, as commerce has become more digital and complex.
This year, it rolled out radio frequency identification package sensing across delivery facilities and U.S. package cars, as well as on every package shipped from a UPS Store location. RFID-enabled labels use a tiny chip to send package information to sensors across the UPS network, which allows packages to be tracked automatically without manual scanning. UPS expects to deliver more than 4 billion RFID-enabled packages by the end of 2026, according to the Wednesday announcement.
During a second quarter earnings call this year, CEO Carol Tomé called RFID “the most significant package visibility advancement in a decade.”
“Think of RFID as the eyes and ears within our network, and (artificial intelligence) as the brain,” Tomé said during the call. “RFID generates data from billions of package movements. Our AI transforms that data into decisions, predictions and actions.”
The shipping giant also plans to hire around 100,000 seasonal employees across hundreds of locations nationwide ahead of the holidays. The volume of packages UPS delivers on a daily basis can nearly double during the holiday season, driving the need to ramp up staffing. During the second quarter earnings call, Tomé said the company expects U.S. volume to increase about 24% from the third quarter to the fourth quarter.
Last month, UPS applied its annual holiday surcharge, which adds elevated fees to packages that are bulky, oversized or require additional handling. They’re higher than last year, with the additional handling and large package surcharges up about 6% per package before Thanksgiving, and the over maximum limits surcharge up about 9% per package.
UPS and other shippers have faced pricing pressures this year as fuel costs have fluctuated during the ongoing conflict with Iran. UPS has raised its fuel surcharge at multiple points this year, which helps to cover the increase in fuel expenses.