UPS slaps new penalty on late-paying clients

United Parcel Service Inc which is trying to find extra revenue and trim costs wherever it can amid a slump in deliveries, imposed a new penalty on customers who pay their bills late, the Wall Street Journal reported on Monday.

The fee of 5 percent on any unpaid shipments went into effect last week for many of the package-hauling giant’s small customers, while the largest UPS customers were told they would get a reprieve until early July, the newspaper said.

The company previously had late-payment penalties but rarely enforced them, according to the Journal.

The move to raise fees follows a rate increase announced by UPS in November. Rival FedEx Corp followed suit later in November.