The 2019 holiday peak season is just around the corner. Incidentally, so are the FedEx and UPS peak surcharges.
Many people think this period is solely the time between Thanksgiving and Christmas. However, for FedEx and UPS this period is really October 1st to January 5th, 2020. Certain packages shipped within these dates will have peak season surcharges applied based on the package characteristics.
Residential Peak Surcharges?
For the 2019 holiday shipping season, UPS announced no residential peak surcharge. Similar to the year before, FedEx will also not apply additional residential surcharges during the holiday season. This is great news for shippers.
What Peak Surcharges are Increasing?
Peak Surcharges apply in addition to all other applicable charges. Plus, they apply to all domestic and international destinations.
|Carrier||Charge||Peak Surcharge Amount||Effective Dates||Total Surcharge Cost|
|FedEx||Additional Handling (Dimensions)||$4.10||Nov. 18, 2019 to Jan. 5, 2020||$17.60|
|FedEx||Additional Handling (Weight)||$4.10||Nov. 18, 2019 to Jan. 5, 2020||$24.10|
|FedEx||Additional Handling (Packaging)||$4.10||Nov. 18, 2019 to Jan. 5, 2020||$16.10|
|FedEx||Ground Unauthorized Package Charge||$435.00||Oct. 21, 2019 to Jan. 5, 2020||$1,110.00|
|FedEx||Oversize Charge||$37.50||Oct. 21, 2019 to Jan. 5, 2020||$127.50|
|UPS||Additional Handling (Weight)||$3.60||Nov. 24, 2019 to Jan. 4, 2020||$26.60|
|UPS||Additional Handling (Other)||$3.60||Nov. 24, 2019 to Jan. 4, 2020||$17.85|
|UPS||Large Package (Commercial)||$31.45||Oct. 1, 2019 to Jan. 4, 2020||$126.45|
|UPS||Large Package (Residential)||$31.45||Oct. 1, 2019 to Jan. 4, 2020||$146.45|
|UPS||Over Maximum Limits||$250.00||Oct. 1, 2019 to Jan. 4, 2020||$1,100.00|
How Can a Shipper Save Money During The Holidays?
These FedEx and UPS peak surcharges are applied to all customers, not just those shipping packages in the e-commerce space. Parcel shippers must understand shipment characteristics to ensure that their agreement is fair. Therefore, having proper data will protect your bottom line.
Some shippers might find it beneficial to move some of these affected packages from UPS to FedEx and vice versa this year. This could lessen the impact of peak surcharges due to the variation of increases. Residential oversize packages will see a savings of around $20 this year if they use FedEx Home Delivery instead of UPS Ground. Remember, this is only the case with the daily rates and discounts being the same with both shippers.
Navigating these fees and peak surcharges during a normal week is hard enough. So then tacking on the added complication of peak surcharge increases makes some shippers completely lost. Contact the parcel experts at Refund Retriever to gain valuable data and logistics cost insight. We can help your organization understand how these increases in transportation impact your bottom line.