2020 has been a year of unprecedented change. The COVID-19 pandemic has caused a ripple effect that has been felt across industries. Shipping and mail have certainly not been exempted from this – in fact, they have been some of the most hard-hit industries, having to adapt quickly to massive changes and operate under significant pressure. In this article, we will provide information on surcharges and price increases by the following carriers:
This year, demand for fast, efficient shipping is so high that major package-handling services like UPS, FedEx and USPS have announced holiday surcharges for the first time. According to Mark Mathews, Vice President of Research at the National Retail Federation, “We know that online shopping picks up over the holidays and the system is already pressed to meet that sort of demand. If you’ve got a situation where you’re adding another 10 or 20% to that, which is well within the realm of a possibility, that creates real challenges.”
Peak Season: October 4, 2020 – January 16, 2021
During the 2020 peak season, UPS will apply surcharges to packages shipped during peak period windows for specific origins, destinations, and service levels. These surcharges apply in addition to all other applicable charges. They range from $1 to $3 per package on high-volume U.S. residential shippers and will apply to anyone shipping more than 25,000 parcels per week during the peak season.
Under UPS’s program:
• If your peak volume exceeded more than 110% of your average weekly volume in February 2020, you will pay $1 per package on all ground residential deliveries, $2 per package on all air deliveries, and $1 per package for SurePost, through which UPS inducts parcels into the USPS for last-mile deliveries.
• Shippers whose peak traffic exceeds their average February 2020 weekly volumes by 200-300% will pay a $3 per package surcharge on residential air deliveries, as well as $2 per package on ground and SurePost.
• Shippers whose peak volumes surpass 300% of their February weekly volumes will pay $4 per package on air and $3 per package on ground and SurePost.
• For larger box shippers sending more than 1000 per week, surcharges to be added will include $50 for large package and $5 per package for additional handling.
According to FedEx, the carrier is implementing surcharges and fees to “continue providing our customers with the best possible service during this challenging time.” Their peak season window begins November 2 and ends January 17, 2021.
Surcharges will range from $1 to $5. SmartPost, FedEx’s last-mile service, will see a $1 per package surcharge throughout November, which will increase to $2 in early December, and return to $1 for the remainder of the season. An additional handling surcharge of $4.90 goes into effect on October 5 and will apply to the entire season.
Like UPS, FedEx will now be imposing surcharges on shipments with atypical sizes and dimensions that make them difficult to handle. These fees will include $52.50 per package on oversized packages, and $4.90 for those that require additional handling. Surcharges will affect those shipping more than 1,000 packages per week during the peak period or more than 10 packages per week that otherwise qualify for any peak surcharges.
The USPS is implementing surcharges in anticipation of skyrocketing demand for ecommerce parcel shipping. These increases will be in effect from October 18 through December 27. Surcharges range from 24 cents to $1.50 per package across all products. The chart below lists fee increases in further detail.
• Veterans Day
• Thanksgiving Day
• Christmas Day
• New Year’s Day
• Martin Luther King Jr. Day
• President’s Day
Post offices will be closed on these dates, therefore the Postal Services will not deliver mail or packages.
If you’re looking to partner with a third-party shipping service before peak season, contact Sologistx today. We are here to streamline your shipping processes and handle the complicated things so that you can focus on managing your business this holiday season.