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Writer's pictureTony Fang

How Does UPS Calculate Shipping Costs?

If you plan to send your packages with UPS, using the UPS rate calculator will help you find an accurate quote. As mentioned, you should avoid unpleasant surprises by considering several factors, including the customs duties and package weight. That said, below are some factors that determine UPS shipping costs.

1. Transit time

The speed of shipment to the destination is probably the main factor to consider when estimating UPS shipping prices. The cost will depend on when you want your consignment delivered. For this, the UPS time and cost calculator can help eliminate guesswork, as it provides various service levels. Once you have chosen the intended delivery speed that suits your customers' expectations, you can select one option from various services: day-definite ground services or night flight out.

2. Dimensions and weight

This reflects the package density or the amount of space that the package will occupy. This applies to both domestic and international shipments. You can easily calculate the dimensional weight from the UPS shipping rate calculator by simply inputting the package's actual weight and dimensions in the calculator.

3. Delivery surcharges

Delivery surcharges apply to packages that need to be delivered or picked up from remote areas. These charges cover the high cost of providing shipping services in hard-to-reach areas. Using the time and cost calculator can help assess these charges with ease to avoid unexpected price quotes later.

4. Taxes and additional fees

All international shipments are subject to additional charges in the form of customs duties depending on the importing and exporting country. The U.S., for instance, has merchandise-processing fees while Europe has Value Added Taxes. Shipments with various commodities are also subject to brokerage charges, which cumulatively add to the cost of shipping. That said, using a UPS shipping rate calculator takes away the headache of estimating UPS shipping costs.

What about UPS shipping insurance?

Shipping packages often exposes them to the possibility of damage. However, you can take away the liability by purchasing UPS insurance cover. Insurance for goods in transit is available from UPS's licensed insurance affiliate, UPS Capital Insurance Agency. UPS capital provides customizable insurance policies based on the nature of your shipments.

Some of the benefits of UPS insurance include reimbursement of the sale prices of goods shipped, cover for risks including those from acts of God, and customizable policies that cover in-transit goods and those in a warehouse.

However, UPS can only be liable for damage or loss of goods up to $100 for domestic packages with UPS Worldwide Express® Freight with no declared value. However, if your goods cost more than this amount, you can declare a maximum of $50,000 per package or $100,000 per pallet.




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