Peak Season Alert: Demand Surcharges of Major Carriers in 2023

As the holiday season approaches, businesses alike brace themselves for the annual surge in shipping demands. With e-commerce continuing its meteoric rise, the pressure on major carriers such as USPS, FedEx, and UPS intensifies each year. 

The 2023 peak season is no exception. These carriers often introduce peak season surcharges to manage the overwhelming volume and maintain service quality. ShipSaving will delve into the specifics of these surcharges for 2023, comparing and contrasting the policies of USPS, FedEx, and UPS. 

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What are peak season charges?

Peak season charges are additional fees imposed by shipping and logistics companies during specific times of the year when the demand for shipping services is exceptionally high. These periods are typically around the holiday season, from late October to early January.

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Purpose of Peak Season Charges:

• Manage High Volume: Surcharges during peak seasons enable carriers to handle increased package volumes and maintain service quality.
• Cover Additional Costs: Surcharges help offset the costs of additional resources like temporary staff and extra vehicles required due to increased volume.
• Encourage Efficient Use of Services: Additional fees encourage more efficient shipment planning from shippers and help optimize the logistics network by avoiding unnecessary shipments during peak times.

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This article serves as a comprehensive guide to help you navigate the peak season surcharges effectively.

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USPS: No Peak Season Surcharges

Updated Sep. 19, 2023: USPS Ready to Deliver for America During the Holidays

The United States Postal Service (USPS) is all set to ensure a seamless delivery experience during the upcoming holiday season. 

Remarkably, USPS stands out by not levying any holiday surcharges, ensuring that customers can enjoy the most affordable mailing and shipping services. This commitment to affordability means no additional fees for residential area delivery or Saturday delivery during the holiday season.

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FedEx: Demand Surcharges

Updated Aug. 29, 2023: Express and Ground Demand Surcharges

Starting Sept. 4, 2023, FedEx has rebranded all surcharges previously named "peak" to "demand". These Demand Surcharges will be applied primarily to residential, FedEx Ground, and FedEx Express packages. 

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UPS: Demand Surcharges

Updated Sep. 7, 2023: Applied to Additional Handling and Large Packages

In light of the new Demand Surcharges introduced by UPS this year, it is crucial for shippers to note that a package will incur a large package fee if the combined measurement of its length (longest side) and girth [(2 x width) + (2 x height)] surpasses 130 inches, or if its length alone exceeds 96 inches.

Furthermore, it's worth noting that UPS does not apply its Peak Season Surcharges to merchants on ShipSaving! With discounted rates and no Peak Season Surcharges, enjoy flexible and reliable delivery options this holiday season and save more when you ship UPS!

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How Do Peak Season Surcharges Impact E-commerce Businesses?

• Increased Shipping Costs: Businesses may experience higher shipping costs due to these surcharges, affecting the overall cost of goods and potentially influencing purchasing decisions.
• Strategic Planning: Businesses need to strategically plan the logistics and inventory management to mitigate the impact of peak season surcharges on their operations and profitability.

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How to Avoid These Surcharges:

• Early Planning: Businesses can plan their shipments well to avoid the peak season and the associated surcharges.
• Alternative Carriers: Exploring alternative carriers who do not impose such surcharges or offer lower surcharges can help in reducing shipping costs.
• Informing Customers: Transparent communication with customers about potential delays and increased shipping costs during peak season can help in managing customer expectations and maintaining customer satisfaction.

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Understanding peak season surcharges is crucial for businesses alike to make informed decisions and navigate the increased costs and delays during high-demand periods effectively.

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With ShipSaving, you can save money on Peak Season surcharges. ‍

Ready to get started? Create a ShipSaving free account here.

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