
As we approach the 2024 holiday season, many delivery providers are reintroducing peak season surcharges, adjusting their fee structures, and extending the duration of these charges. With the holiday shipping period condensed this year, shippers should be aware of these changes to manage their logistics costs effectively.
Overview of Peak Season Surcharges
Major Carriers Implementing Surcharges
FedEx
New Fees: A per-package surcharge ranging from $1 to $2 for express services and $0.30 to $0.55 for ground residential shipments.
High-Volume Charges: Additional fees from $1.45 to $8.25 for large-scale shippers, depending on service and volume increase.
Duration: Oct. 28, 2024, to Jan. 19, 2025.
UPS
Surcharges: Fees between $0.25 and $2 for ground residential, air, and SurePost packages.
High-Volume Charges: Ranging from $1.50 to $8.25, based on service and increased volume.
Duration: Oct. 27, 2024, to Jan. 18, 2025.
U.S. Postal Service
Rate Increases: Average increases of 6.4% for Ground Advantage, 5.5% for Priority Mail, and 4.9% for Priority Mail Express.
Duration: Oct. 6, 2024, to Jan. 19, 2025.
OnTrac
Residential Surcharge: A flat fee of $0.75 for residential packages.
Additional Fees: A supplemental surcharge of $7.75 for packages requiring extra handling and $84.50 for oversized packages.
Duration: Oct. 26, 2024, to Jan. 18, 2025.
GLS US
Residential Surcharge: A $1.50 fee for every residential parcel shipped.
Duration: Oct. 28, 2024, to Jan. 19, 2025.
DHL eCommerce
Peak Surcharges: Fees up to $1.25 for domestic SmartMail products, depending on weight and distance.
Duration: Oct. 27, 2024, to Jan. 18, 2025.
Carriers Opting Out of Peak Surcharges
While many major carriers are instituting peak season surcharges, some smaller delivery providers are opting out:
Veho: The CEO emphasized that peak surcharges disproportionately affect small to medium-sized retailers and e-commerce brands, negatively impacting their holiday margins.
Pandion: Stated they can flex with demand without imposing surcharges.
Jitsu: Also choosing to forgo seasonal fees.
Conclusion
As holiday shipping ramps up, shippers should be proactive in understanding the evolving landscape of peak season surcharges. With many carriers increasing fees, it's essential to assess logistics strategies and consider alternatives that can help manage costs during this busy time. Keeping informed and planning ahead will be crucial for navigating the holiday shipping season effectively.
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