As businesses and consumers gear up for the fast-approaching holiday peak season, the small parcel shipping industry is abuzz with the 2024 peak season surcharge updates. The updates from FedEx and UPS are set to impact shipping rates during the peak holiday shipping period, even well before Black Friday and Christmas.

Additional Handling Surcharges

Among the key updates, both UPS and FedEx have announced peak season surcharges on additional handling, large package, oversize and over-max limit shipments.

  • UPS’s surcharges are in effect from September 29, 2024, to January 18, 2025.
  • FedEx’s surcharges apply from September 30, 2024, to January 19, 2025.
  • Importantly, both carriers extended the duration of peak small parcel shipping surcharges on large packages for an additional week compared to the previous year. This extension reflects the carriers’ proactive measures in addressing the complexities and increased demands of holiday shipping.

Changes in Peak Surcharges Structure

In a notable shift from previous years, both UPS and FedEx have chosen to break down the 2024 peak surcharges into three distinct periods rather than applying a universal rate throughout the entire season. This strategic adjustment aims to offer greater transparency and adaptability for shippers in planning and budgeting for their holiday shipping needs. The phased structure could enable businesses to better align their small parcel shipping strategies with the specific dynamics and demands of each peak period, ultimately contributing to smoother operations and improved cost management.

UPS Residential Surcharges

UPS’s SurePost, Ground Residential and Air surcharges will be active from October 27, 2024 to January 18, 2025. A significant development this year is UPS’s decision to reintroduce peak surcharges on all Air, Ground Residential and SurePost packages with no volume requirements, in addition to their standard volume-based peak surcharges.

The implementation of three surcharge periods, with a designated “peak” month in the middle of the season, underscores UPS’s commitment to optimizing operational efficiency and ensuring service levels are upheld during the busiest holiday shipping periods.

FedEx Residential Surcharges

Similarly, FedEx will apply domestic express, ground residential, FedEx home delivery and ground economy per package peak season surcharges from October 28, 2024 to January 19, 2025. These surcharges are designed to account for the heightened demand and operational intricacies tied to residential deliveries amidst the peak holiday shipping season.

By clearly delineating the peak surcharge periods, FedEx aims to enable shippers to proactively strategize and adjust their shipping plans in line with the specific demands of each phase of the peak small parcel shipping season.

Residential Demand Surcharges

Both UPS and FedEx will maintain their volume-based peak season surcharge tiers from the previous year. Shippers can anticipate an additional week of peak surcharges, underscoring the carriers’ dedication to effectively managing the surge in shipping volumes during the demanding holiday period.

While UPS and FedEx share similarities in their peak surcharge structures, important distinctions exist in how the carriers determine peak thresholds, calculation weeks (particularly around holidays) and baseline calculations. These nuances are pivotal for shippers as they navigate and understand the intricacies of the peak season surcharges from both carriers.

A notable shift in 2024 is the introduction of a new per-package demand surcharge applied to every residential package, regardless of the shipment volume. This addition reflects the carriers’ ongoing efforts to optimize residential delivery services and manage the increased complexities arising during peak shipping periods.

Stay Informed, Stay Ahead

As businesses prepare for the upcoming small parcel shipping peak season, understanding and adapting to these peak season surcharges from UPS and FedEx will be essential for managing costs, ensuring timely deliveries and optimizing supply chain operations.

Proactively staying informed and equipped with the necessary insights will enable shippers to navigate the intricacies of peak season shipping successfully. By aligning their strategies with the carriers’ latest updates, businesses can foster operational efficiency, cost-effectiveness and superior customer experiences during the peak holiday shipping season.