Understanding UPS Canada Rates: A Complete Guide for Businesses

Understanding UPS rates

The fast-growing eCommerce market in Canada has also fueled growth in the shipping industry. However, if you want to go for a safe bet, associating with big names like UPS is ideal.

Established in 1907, United Parcel Services (UPS) is the largest carrier in the United States. It also has an extensive service network in Canada where it operates as UPS Canada. 

UPS functions as a logistics and package delivery services provider and UPS shipping rates in Canada are affordable. The carrier offers logistic services including ground freight, air freight, contract logistics, ocean freight, distribution, insurance, customs brokerage, and more. 

You can send packages within Canada using UPS Ground for economy shipping or UPS overnight with guaranteed expedited delivery in 1-2 days. If you want to deliver packages to customers faster, UPS is a good option, although it might increase your shipping cost. 

Understanding UPS Shipping Rates

For businesses seeking reliable shipping partners, UPS rates in Canada shipping offer transparent rates for domestic and international shipping.

United Parcel Service (UPS) is a global leader in providing shipping services and stands out for its flexible shipping options and service quality. However, we need to understand UPS shipping costs and how they vary by dimension, weight, destination, and service type. 

Insight into UPS Shipping Rates

UPS Canada shipping rates are the charges applicable for moving goods through the UPS network. 

Several factors, including package size, weight, shipping destination, delivery speed, shipping zone, and service type, influence these rates. 

UPS has various pricing models, such as flat rates and variable pricing based on package specifications and customer needs.

UPS Canada rates are based on dimensional weight (DIM weight) and the transit time required for delivery. 

Factors to Consider UPS Shipping Rates:

Parcel Weight and Dimensions: Parcel weight and size play a key role in determining shipping rates. Bulkier and larger packages require higher shipping fees. 

Shipping Service Type: UPS provides a range of shipping services, starting from UPS Ground to UPS Next Day Air. 

Type of Packaging: Businesses using the free packaging options of UPS are often able to lower costs. 

Shipping Zones: UPS has several shipping zones. Shipping costs go up with the increasing distance between the origin and destination zones.

Surcharges: There are applicable surcharges for fuel, peak seasons, residential deliveries, and deliveries to remote areas.

By understanding these factors, retail businesses can keep their shipping costs low. They can also offer free or cheap shipping along with fast delivery to their consumers.

Factors Influencing UPS Shipping Rates in Canada

Factors influencing UPS shipping rates in Canada are below:

Item weight, height, & size: Like other carriers, UPS also uses unique terminology to define weight and size restrictions. Large or odd-sized items can get approved at a surcharge. If you are still unsure about your package’s size, contact your chosen courier for clarity.

Distance of shipping: If you are sending packages to both domestic and international destinations, you have to bear the logistics costs accordingly. 

Delivery Timeline: The delivery timeline will vary depending on where you are sending a package and the destination. Based on these factors, a carrier will provide regular and express shipping service. 

Express deliveries have overnight and same-day shipping services. 

Standard shipping times will likely take 2 to 7 business days, based on the distance.

Coverage for Remote Areas: There is a significant difference when sending packages to residential and commercial areas and remote areas. 

Usually, there are additional charges to distribute packages to remote areas because not all carriers are open to serving.

Insurance Fees: During transporting a shipment, you can never rule out loss, damages, and theft. This is why it is important to get insurance coverage for your shipments. 

Insurance costs can increase your shipping costs significantly, depending on the items’ type and value. 

Right Transportation: Selecting the right kind of transportation is crucial when moving goods. 

There are mainly two factors that you need to consider when making your decision: transit time and the costs related to the chosen mode of transportation.

UPS Canada Shipping Services and Corresponding Rates

UPS rates to Canada are based on the weight and dimensions of the parcel, the destination, and the expected delivery timeline.

UPS shipping provides the cheapest rate for ground service if you are shipping a small (2 lbs) package cross-country.

In the case of international services, UPS offers cheaper shipping options.

UPS Domestic Shipping Service:

UPS Shipping TypeDelivery TimelineShipping Rates
UPS Expedited2 business daysCAD 54.37
UPS Express Saver (Canada)1 business dayCAD 57.86
UPS Express1 business dayCAD 72.17
UPS Express Early1 business day CAD 88.37
UPS Standard3-7 business daysCAD 16.012 (Toronto to Ottawa)
UPS Express Saver1 business dayCAD 27.18 (Calgary to Winnipeg)
UPS Worldwide Expedited2-5 business daysCAD 41.66 (Ottawa to Los Angeles)

UPS Canada International Shipping

The following is an example of shipping from Toronto, Canada to Hamburg, Germany for a package weighing 3 lbs.

UPS Shipping TypeDelivery TimelineShipping Rates
UPS Worldwide ExpressBy 10:30 a.m. or noonCAD 145.14
UPS Worldwide Express FreightBy the end of the dayCAD 145.14 
UPS Worldwide Express Freight MiddayBy noon or 2:00 p.m.Starts at CAD 35.36
By the end of the dayCAD 230.89 

US to Canada Shipping Cost UPS (For a package under 3 lbs)

UPS Shipping TypeDelivery TimelineShipping Rates
UPS Worldwide Express1 business day$ 118.43
UPS Worldwide Express Saver1 to 3 business days$ 101.38 
UPS Worldwide Expedited2 to 5 business days$91.60
Flat Rate ShippingWithin 5 days, within 3 days, 2nd day, and Next dayExtra small: $10.85; Small: $14.15; Medium: $16.90; Large: $22.30; Extra Large: $27.60 

How to Calculate Shipping Costs with UPS Canada

Calculating UPS shipping rates to Canada requires understanding different factors that influence cost. Those factors are parcel weight, size, dimensions, destination, service type, and others. UPS provides a calculator to simplify this process and get accurate estimates.

Steps to Calculate UPS Canada Shipping Costs:

1. Open the UPS Shipping Calculator:

Go to the ‘Calculate Time and Cost’ section on the carrier’s website after entering your UPS credentials.

Enter the details such as package dimensions, weight, and destination.

2. Apply DIM Weight:

UPS calculates shipping costs considering dimensional weight and parcel size.

3. Add Surcharges:

Consider additional fees like delivery surcharges to residential addresses, fuel costs, and charges for extended area coverage.

4. Compare Different Service Types:

Use the UPS calculator to figure out the differences in UPS shipping rates in Canada, such as Ground, Air, and Freight options.

Understanding UPS Rate and Service Guides

To navigate and interpret UPS’s Rate and Service Guides, you need to: 

  • Identify the UPS shipping service you need;
  • Enter your parcel weight, size, and dimensions; 
  • Find out the relevant shipping zone in the guide; 
  • Find the listed shipping cost based on the chosen shipping service and weight within that zone. 

Also, consider the applicable surcharges listed in the guide. 

Main points to keep in mind when using the UPS Rate and Service Guide:

  • Open the Service Guide:

You can find the updated UPS Rate and Service Guide online or on the UPS website. 

  • Decide your shipping needs:

Decide on the UPS shipping service you want to use (e.g., Ground, Next Day Air) based on your delivery time needs. 

  • Get the package details:

Find out the exact weight and dimensions of your package. 

  • Identify the relevant shipping zone:

Use the origin and destination zip codes to identify the relevant shipping zone on the guide. 

  • Interpret the rate table:

Columns: Each column represents a different weight increase. 

Rows: Each row relates to a specific UPS service type. 

Intersection: Where your weight and service level intersect the table will show you the shipping cost for that zone. 

  • Surcharges:

There might be additional fees for residential delivery, hazardous materials, or fuel surcharges. 

Example:

You want to ship a 5-pound parcel via UPS Ground from Manitoba to Quebec.

Steps:

  • Open the UPS Rate and Service Guide.
  • Choose ‘UPS Ground’ service.
  • Find the shipping zone for Quebec.
  • Go to the 5-pound weight column on the table.
  • The cost at the intersection of the ‘UPS Ground’ row and the 5-pound column for the relevant zone will be the shipping charge.

Comparing UPS Rates with Other Carriers in Canada

Assume you are sending a package weighing 5lb from Vancouver to Toronto with 15L x 12H x 12W cm length. The declared value of the package is $5.

Below is the comparison of UPS shipping rates with other carriers in Canada: 

Domestic Shipping Rate Comparison:

CarrierShipping TypeDelivery TimelineShipping Rates
UPS CanadaUPS Standard5 business days at the end of the day$60.39
UPS Expedited2 business days at the end of the day$103.49
UPS Express SaverNext business day at the end of the day$109.34
UPS ExpressNext business day at 10:30 AM$127.26
UPS Express EarlyNext business day at 9 AM$148.95
Canada PostRegular Parcel7 business days$27.43
Xpresspost2 business days$60.46
PriorityNext business day$87.26
FedExFedEx Ground4 business days at the end of the day$41.59
FedEx Economy3 business days at 8 PM$89.60
FedEx 2Day2 business days at 8 PM$108.99
FedEx Standard Overnight 8 PMNext business day at 8 PM$119.25
FedEx Standard Overnight 12 PMNext business day at noon$132.02
FedEx Standard Overnight 10 AMNext business day at 10 AM$162.30
PurolatorPurolator Ground5 business days by the end of the day$73.70
Purolator Ground 10:30 AM5 business days at 10:30 AM$89.24
Purolator ExpressNext business day by the end of the day$91
Purolator Ground Evening5 business days between 5:30 and 9:30 PM$92.63
Purolator Express 12 PMNext business day at noon$104.01
Purolator Ground 9 AM5 business days at 9 AM$109.70
Purolator Express 10:30 AMNext business day at 10:30 AM$115.38
Purolator Express EveningNext business day between 5:30 and 9 PM$124.72
Purolator Express 9 AMNext business day at 9 AM$147.86

International Shipping Rate Comparison:

CarrierShipping TypeDelivery TimelineShipping Rates
UPS CanadaUPS Worldwide Expedited4 business days$150.74
UPS Worldwide Saver2 business days by the end of the day$160.76
UPS Worldwide Express2 business days at noon$169.24
UPS Worldwide Express Plus2 business days at 9 AM$250.79
Canada PostInternational Parcel – Surface6-10 business days$69.95
Xpresspost – International3 business days$116.53
FedExFedEx International Economy4 business days at 6 PM$263.81
FedEx International Priority2 business days at 6 PM$291.42
FedEx International Priority Express2 business days at noon$305.29
FedEx International First2 business days at 9 AM$420.62
PurolatorPurolator Express International Guaranteed2 business days$259.75
Purolator Express International 12 PM Guaranteed2 Business days$273.63

Tips for Reducing Shipping Costs with UPS Canada

Below, we have listed a few practical tips to help you reduce UPS shipping costs:

1. Use UPS Ground for Shipping Non-Urgent Items

UPS Ground is an affordable option for ground shipments that do not require fast delivery. 

This shipping type offers cost-effective and reliable service, making it a preferred option for non-urgent deliveries.

Why it is Effective:

  • Lower cost than air services.
  • Ideal for delivering packages within the same zone or to shorter distances.

2. Shipment Consolidation

By consolidating multiple shipments into a single package, businesses can minimize shipping costs and improve efficiency.

Why it is Effective:

  • Lowers the number of shipments, reducing handling fees.
  • Maximizes package space, reducing DIM weight charges.

3. Choose the Right Packaging

Choosing the right packaging is a crucial factor in reducing shipping costs. UPS allows businesses to use their own packaging.

Why it is Effective:

  • Appropriately sized packaging reduces dimensional weight charges.
  • UPS packaging materials are often free.

4. Make the Most of UPS Discount Programs

Businesses that send shipments regularly can benefit from UPS membership discounts.

Why it is Effective:

  • Saving costs on domestic and international shipments.
  • Discounts on additional services like insurance and supplies.

5. Use UPS Flat Rate Shipping

Flat-rate shipping is a simple cost structure that charges a standard fee based on box size rather than weight or destination.

Why it is Effective:

  • Easy to estimate the cost for budget planning.
  • Cost-effective for shipping bulky items over short distances.

6. Use Carriers Associated with UPS:

For businesses shipping internationally, hiring UPS’s partnered carriers can get you discounted costs and specialized services.

Why it is Effective:

  • Lower costs for international shipments.
  • Access to services tailored for specific regions.

Common Mistakes to Avoid When Estimating Shipping Rates

Shipping mistakes can cause delays in the shipping process. Here are some common mistakes that businesses need to avoid: 

Inaccurate Bill of Lading: A Bill of Lading (BOL) is a legal document that works as proof of ownership for the shipped items. 

The shipper and the carrier need to sign the bill of lading and list the item details, including its origin, destination, and contents. The BOL document also works as a contract between the shipper and the carrier, specifying the responsibilities of both parties.

Poor Packaging: Poor packaging may result in damaged items, leading to dissatisfied customers. Even shipping boxes that are properly packed, the structural integrity of most shipping containers declines during shipping.

Incorrect Address: This is a common mistake that is easily avoidable with a little focus, it keeps happening frequently. It’s a silly error that might cost you a lot and cause a delay to your package. Your shipment will go to the wrong location if the address is incorrect or if it is erroneously filled for you. 

Wrong Labeling: Wrong labeling can cause major problems in the supply chain. It can lead to items being shipped to the incorrect locations or being mislabeled. This issue can cause supply chain delays and eventually lead to customer dissatisfaction.

Depending on One Carrier for All Shipments: If you depend on a single carrier for sending all your packages, you are taking a lot of risk. 

If something occurs to your carrier, whether a strike or an, you may have been left without a way to get your items to your customers. This could result in lost sales and plenty of frustrated customers.

You are also missing out on potential cost savings. Different carriers offer different rates, so you could be paying a higher price if you only use one. You can get the best shipping rates and save money by hiring multiple carriers.

Conclusion

The shipping services that UPS Canada provides come with a commitment to fast delivery, flexibility, service options, and affordable rates.

When you choose a carrier, you need to consider the number and type of services the carrier offers for your route or the timeline to get your packages delivered.

You can also calculate the shipping rates using the UPS shipping calculator. You need to enter your shipment details and places into the calculators to find the rates.

For affordable shipping, you need to consider all the possible options, and an integrated shipping platform will allow you to explore the best shipping services and rates. 

FAQs

Q: How does UPS calculate shipping rates in Canada? 

Ans: UPS calculates shipping rates in Canada by considering the following factors: 

  • Package weight: The actual package weight 
  • Package dimensions: The package’s length, width, and height 
  • Shipping distance: The distance the package will travel 
  • Service type: The chosen service type, such as UPS Ground, 2nd Day Air, or Next Day Air 
  • Additional services: Any additional services, such as insurance or signature confirmation

Q: What factors can increase my UPS shipping costs? 

Ans: Factors that can increase your UPS shipping costs are your package weight, size (dimensional weight), delivery speed, shipping distance, special handling needs (like fragile items), additional charges for large packages, fuel surcharges, international customs fees, and choosing a faster delivery option.

Q: Are there any additional fees I should be aware of with UPS shipping?

Ans: Yes, there are additional fees that UPS may charge for shipping, including: 

Extended area surcharge, which applies to less populated or remote areas 

Fuel surcharge, applicable to transportation charges  

Additional handling charge applicable to packages that need special handling

Brokerage fees vary based on service type and destination country. 

Additional charges for large packages.

Q: Can I negotiate shipping rates with UPS Canada? 

Ans: You can negotiate shipping rates with UPS Canada based on volume. You can also explore discounted rates on various shipping platforms. Using a mix of services, such as UPS standard and expedited options, you can meet varying customer needs efficiently.

Q: What are the cheapest UPS shipping options for small businesses? 

Ans: Some of the cheapest UPS shipping options for small businesses include:

  • UPS Simple Rate: A flat-rate service that uses predetermined boxes and automatically insures packages up to $100 
  • UPS Surepost: An affordable shipping option 
  • UPS Small Business Program: Offers resources for small business owners

Q: How often do UPS shipping rates change in Canada?

Ans: UPS shipping rates in Canada usually change annually, with the most significant adjustments occurring around January each year, reflecting changes in operational costs like fuel and labor. However, UPS may also implement smaller rate adjustments throughout the year as needed, including surcharges based on demand or peak seasons.

Revathi Karthik
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