by EasyPost
Last updated: October 5th, 2023
Peak season presents big opportunities for businesses of every size. You can reach new customers and sell products at record speeds—as long as you’re prepared to ship orders quickly, accurately, and affordably.
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As you choose carriers and forecast shipping costs, don’t forget to factor in peak season surcharges. In this article, we’ll explain what peak season surcharges are and compare the surcharges of three major carriers for 2023.
What are peak season surcharges?
Peak season surcharges are extra fees carriers charge during their busiest months, usually October through December or January.
As people shop for the holidays and take advantage of great Black Friday and Cyber Monday deals, carriers have to manage increased volume—which increases the cost of labor, transportation, and supplies. Adding surcharges helps them keep up with demand while maintaining high standards of service. Surcharges are generally flat fees, and they vary based on carrier and shipping volume.
We’ve compiled the shipping surcharges of USPS, UPS, and FedEx for 2023 into a single source of truth.
Compare 2023 peak season surcharges for USPS, UPS, and FedEx
While UPS and FedEx have raised their surcharges slightly since last year, USPS has eliminated peak season surcharges for 2023. Let’s dive into the details.
USPS won’t have surcharges in 2023
In a recent press release, the United States Postal Serviceopens in new tabopen_in_new (USPS) announced that they’re not going to have peak season surcharges this year. The press release goes on to explain that there won’t be extra fees for residential delivery, Saturday delivery, or minimum volumes.
The press release quotes Postmaster General and CEO Louis DeJoy, who says, “With no holiday surcharges, we are strongly positioned to be America’s most affordable delivery provider this holiday season.”
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It’s hard to argue with that! USPS is a great choice for businesses who don’t want to pay extra fees to ship during peak season. While other major carriers charge more as your volume increases, USPS doesn’t have any volume limitations.
You can ship with USPS via EasyPost for rate discounts of up to 18% off retail pricing and automatic shipping label generation.
UPS surcharges
Some UPSopens in new tabopen_in_new services have implemented demand surcharges for businesses that ship high volumes during peak season, as well as surcharges for packages that are oversized or require special handling. But there is a way for you to get around these additional costs.
UPS shipments on EasyPost won’t have surcharges in 2023
As a commitment to you, UPS labels purchased through EasyPost will not be subject to any surcharges this holiday season. That means you’ll be able to save extra by leveraging our discounted rates and dodging the demand surcharges. A UPS account is available for free for all of our SMB shippers and offers discounted rates up to 82% off retail pricing. To learn more about UPS shipping visit our website, or add the carrier account today in your EasyPost dashboard.
Demand surcharges
UPS customers who send more than 20,000 UPS Air Residential, UPS Ground Residential, or UPS SurePost packages in a given week have to pay a peak season surcharge.
The surcharge applies to shipping volumes greater than 105% of the average baseline volume. In other words, the higher your volume is compared to non-peak season times, the higher the surcharge. The costs listed below are per package.
Effective: October 29, 2023-January 13, 2024
Large package and additional handling surcharges
UPS also has a surcharge for packages that need additional handling or are larger than usual.
Effective: October 1, 2023-January 13, 2024
FedEx surcharges
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Like UPS, FedExopens in new tabopen_in_new calculates peak season surcharges based on shipping volume, with higher surcharges for packages with special handling requirements.
Demand surcharges
For packages sent via FedEx Ground Economy, the amount of the surcharge varies based on when the package is sent.
Residential delivery surcharges
Businesses that send over 20,000 residential and FedEx Ground Economy packages in one week are subject to a residential delivery surcharge. The costs below are per package.
Effective: October 30, 2023-January 14, 2024
Large package and additional services surcharges
Large packages, or those that require additional handling, will incur additional fees during peak season.
Effective: October 2, 2023-January 14, 2024
How have things changed?
If you’re curious to see how these surcharges compare to last year’s, check out our 2022 peak season surcharge articles here: USPS, UPS, FedEx.
Get the best shipping deals with EasyPost
This article gives you a good idea of the peak season surcharges you’ll be facing, but getting the best shipping rates is still complicated. With a lot at stake during peak season, you want to find great prices—and more importantly, make sure orders are delivered to your customers accurately and on time.
The EasyPost shipping API automatically finds the best value shipping options, making it easier to get great deals. With address verification, real-time package tracking, and more, EasyPost has everything you need to keep shipping costs low and give your customers a great experience.
We understand you might not be looking to make a change this peak season (that could be cutting things a little close). But if things don’t go as well as you’d hoped, come back in 2024 and get in touch with a shipping expert to learn what EasyPost can do for your business.
Source: https://t-tees.com
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