Understanding peak season surcharges is an effective way for shippers to perceive and respond to the impact of market fluctuations more quickly.
Peak season surcharges for both USPS, FedEx and UPS started earlier this year. With USPS' temporary rates starting in October, FedEx entering peak season from September and UPS peak season surcharge effective August 14, 2022, until further notice.
Follow ShipSaving to see these carriers' latest terms and fee updates to find out which services are affected.
What are Peak Season Charges?
There is no doubt that carriers are primarily busy during the holiday season.
In addition to the massive volume of shipments, to ship these packages as quickly as possible and meet customer expectations, carriers often hire thousands of seasonal employees, rent more trucks and planes, and find ways to cover the expenses caused by these costs.
Thus, holiday shipping surcharges are created as a result.
Here's a look at what price changes are included in the peak surcharges charged by each of the above three carriers:
USPS 2022 peak season surcharges
Updated Aug. 10, 2022: Peak Surcharges
First-Class Package Service, Parcel Select Ground, and 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.
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.
A full commercial and retail pricing list can be found on the USPS’s Postal Explorer website.
FedEx 2022 peak season surcharges
Updated Aug. 5, 2022: Peak Surcharges
*See the FedEx Service Guide for the criteria and characteristics of these surcharges.
*FedEx Ground Economy is a contract-only service.
FedEx has announced a 2022 peak season surcharge, which puts further pressure on this year.
UPS 2022 Peak Season Surcharges
Updated Aug. 26, 2022: Peak Surcharges
Effective August 26, 2022, all other previously announced Peak/Demand Surcharges will continue to apply as the 2022 UPS® Rate & Service Guide.
A UPS Peak Surcharge will apply to packages requiring additional handling and Large Packages for all U.S. domestic, U.S. import and export shipments.
UPS has announced a peak demand surcharge for the 2022 holiday season, and they will implement new surcharge collection rules beginning in October. Some holiday shipping surcharges exceeded last year's prices, and official information can be found here：
UPS per-package peak surcharge, based on shipments over the shipper’s ‘baseline volume’:
Additional Handling and Large Package Surcharges:
*There is one additional point to note for shippers, a $400 per package surcharge fee will be applied for packages exceeding the maximum limit after October 2.
Other Surcharges Fees Can Also Lead to Higher Shipping Rates
You can optimize your shipping strategy by choosing the right carrier based on peak surcharges, and don't forget that fuel surcharges are subject to frequent change. ShipSaving will also provide real-time updates on the latest fuel surcharge rates from all carriers for comparison.
With ShipSaving, You Can Save Money on Peak Season Surcharges
Increased carrier surcharges indicate an increase in shipping costs for all eCommerce shippers.
You may, however, counterbalance these rate hikes with ShipSaving. Our all-in-one shipping platform provides immediate access to the lowest possible discounted shipping rates from the world's leading carriers, saving you up to 89%.
Ready to get started? Create a ShipSaving free account here.
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