By Pierbridge Staff / www.pierbridge.com / September 7th, 2022
This year has been full of trials, tribulations, and costs for all shippers. Even as gas prices are falling and inflation has stabilized [although still high], shippers are still faced with higher costs, even as customers increasingly shop with the intent of free and fast delivery. Moreover, as the busy holiday shipping season approaches, large shippers face additional costs in the form of annual peak season fees from FedEx, UPS, and USPS.
Here is a quick rundown of the announced peak season fees so enterprise eCommerce and retail shippers can plan for keeping costs down while delivering an outstanding customer experience:
FedEx Peak Season Surcharges
FedEx surcharges will start on Oct.10. These surcharges impact large FedEx shippers that see volumes climb during the holiday shipping season. In addition, FedEx’s peak residential delivery charge applies to enterprise customers shipping more than 20,000 residential and FedEx Ground Economy packages.
FedEx 2022 peak season surcharges
| Surcharge name |
Services affected |
Surcharge per package, effective date |
| Peak — Additional Handling Surcharge |
U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$3.45 (Sept. 5 - Oct. 2) $6.55 (Oct. 3 - Jan. 15) |
| Peak — Oversize Charge |
U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$39.50 (Sept. 5 - Oct. 2) $68.75 (Oct. 3 - Jan. 15) |
| Peak — Ground Unauthorized Package Charge |
U.S. Ground Services, International Ground Service |
$385 (Oct. 3 - Jan. 15) |
| Peak Surcharge |
FedEx Ground Economy Package Services |
$1.50 (Oct. 31 - Nov. 27, Dec. 12 - Jan. 15) $2.50 (Nov. 28 - Dec. 11) |
| Peak — Residential Delivery Charge |
FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate packages) |
Based on shipper’s “peaking factor” (Oct. 31 - Jan. 15) |
SOURCE: FedEx
UPS Holiday Surcharges
From Oct. 30, 2022, through Jan. 14, 2023, customers billed for more than 20,000 packages any week after October 2021 will see a “Peak/Demand Surcharge” applied to certain UPS Air Residential, Ground Residential, and SurePost shipments, according to UPS.
“The Peak/Demand will apply weekly to each package over 105% of the Baseline weekly average volume for each service level,” the carrier said.
UPS per-package peak surcharge, based on shipments over the shipper’s ‘baseline volume.’
| |
>105% to 125% |
>125% to 150% |
>150% to 200% |
>200% to 300% |
>300% to 400% |
>400% |
| UPS SurePost |
$1.25 |
$1.75 |
$2.00 |
$2.50 |
$4.25 |
$6.00 |
| UPS Ground Residential |
$1.25 |
$1.75 |
$2.00 |
$2.50 |
$4.25 |
$6.00 |
| UPS Next Day Air Residential |
$2.25 |
$2.75 |
$3.00 |
$3.50 |
$5.25 |
$7.00 |
| All Other UPS Air Residential |
$2.25 |
$2.75 |
$3.00 |
$3.50 |
$5.25 |
$7.00 |
SOURCE: UPS
USPS Holiday Surcharges
The U.S. Postal Service (USPS) is temporarily increasing shipping rates for all customers during the holiday season again this year.
The surcharges are effective from Oct. 2. 2022, through Jan. 22. 2023 on everything from base-level flat rate boxes and envelopes to much larger items will “keep USPS competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume,” the agency said.
Priority Mail and Priority Mail Express:
- Commercial:
- $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
- $0.25 increase for Zones 1-4, 0-10 lbs.
- $0.80 increase for Zones 5-9, 0-10 lbs.
- $0.75 increase for Zones 1-4, 11-25 lbs.
- $2.80 increase for Zones 5-9, 11-25 lbs.
- $3.00 increase for Zones 1-4, 26-70 lbs.
- $6.50 increase for Zones 5-9, 26-70 lbs.
- Retail:
- $0.95 increase for PM and PME Flat Rate Boxes and Envelopes.
- $0.30 increase for Zones 1-4, 0-10 lbs.
- $1.00 increase for Zones 5-9, 0-10 lbs.
- $0.95 increase for Zones 1-4, 11-25 lbs.
- $3.20 increase for Zones 5-9, 11-25 lbs.
- $3.25 increase for Zones 1-4, 26-70 lbs.
- $6.45 increase for Zones 5-9, 26-70 lbs.
First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:
- Commercial:
- $0.25 increase for Zones 1-4, 0-10 lbs.
- $0.40 increase for Zones 5-9, 0-10 lbs.
- $0.75 increase for Zones 1-4, 11-25 lbs.
- $1.60 increase for Zones 5-9, 11-25 lbs.
- $3.00 increase for Zones 1-4, 26-70 lbs.
- $5.50 increase for Zones 5-9, 26-70 lbs.
- Retail:
- $0.30 increase for Zones 1-4, 0-10 lbs.
- $0.60 increase for Zones 5-9, 0-10 lbs.
- $0.95 increase for Zones 1-4, 11-25 lbs.
- $2.70 increase for Zones 5-9, 11-25 lbs.
- $3.25 increase for Zones 1-4, 26-70 lbs.
- $5.85 increase for Zones 5-9, 26-70 lbs.
- SOURCE: USPS
Peak surcharges this holiday season are unavoidable, especially for enterprise-level retail and eCommerce companies. And with many dates extending into January, these costs will impact the shipping of packages to customers and the inevitable return shipping that will follow. Therefore, it is more important than ever for shippers to maximize the planning and optimization of their shipping to make it a happy holiday season.
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