Peak Season Surcharges 2023: USPS, UPS, FedEx, DHL

Tis the season for fall foliage, cool weather, pumpkin spice lattes, and the dreaded announcement of peak season surcharges...or is it? Since the start of the pandemic in 2020, carriers such as USPS, UPS, and FedEx have added surcharges during the holiday season to combat the increased cost of business caused by the massive influx of packages. However, there's a silver lining this year: there will be no peak season surcharges for Shippo users! This waive will be for some of the nations top carriers and shipping service levels.

In this blog post, we'll delve into the significance of this great opportunity and explore how Shippo users can reap the benefits.

USPS Surcharges for the 2023 Holiday Season

On September 19, 2023, USPS shocked many in the shipping, e-commerce, and logistics industries by announcing it would not be assessing peak season surcharges this year. Everyone, including Shippo users, won’t have to worry about increased rates this holiday season.

“We have been planning early and leveraging investments in our people, infrastructure, transportation and technology made possible by the Delivering for America plan,” said Postmaster General and CEO Louis DeJoy in an announcement. “And with no holiday surcharges, we are strongly positioned to be America’s most affordable delivery provider this holiday season.”

The decision to not assess holiday shipping surcharges has come after some large investments from the Postal Service including:

• Hiring pre-career employees into full-time employees, which in turn limits the need to hire seasonal employees
• Installing 348 new package sorting machines across the country
• Redesigning their ground transportation network in order to avoid expensive air travel
• Introducing the new service level USPS Ground Advantage earlier this summer

Shippo users can continue to ship with the confidence of knowing that they’re getting the best USPS shipping rates possible during one of the most costly times of the year.

UPS Demand Surcharges This Year

While carriers have announced additional surcharges for the past three years, one thing has remained constant throughout that time and will continue to now. For shippers that ship with UPS on Shippo, UPS will not apply the recently announced Demand Surcharges†.

That means discounts* that Shippo users have enjoyed year round will not be affected during the holiday season. Some examples of those savings include the following:

Since delivery times are of great importance to customers this time of the year, you can deliver UPS 2nd Day Air^® and UPS Next Day Air^® packages while still saving big when you ship with UPS on Shippo. Other common UPS surcharges including fuel, residential, and delivery area surcharges are also waived for those who ship with UPS on Shippo.

With discounted rates and no Demand Surcharges†, e-commerce merchants can enjoy flexible and reliable delivery options this holiday season and save more when you ship with UPS!

Please note that sellers on Shippo using an existing UPS^® account can find more information on Peak/Demand Surcharges on ups.com or by contacting their UPS representative.

*Discounts off UPS^® Daily Rates. Rates are limited to shipping from the U.S. only. Rates and any applicable discounts are subject to change at any time without notice.

†Peak Season Surcharges are not applied to accounts opened on Shippo.

FedEx Demand Surcharges for 2023

Earlier this Fall, FedEx announced they will implement demand surcharges (previously named peak surcharges) on Express and Ground service levels from October 30, 2023 through January 14, 2024. The exact amount of the surcharge will be calculated on your business’s previous shipping volume. There is also be an added fee to common surcharges such as Additional Handling Surcharge and Oversize Charge being applied from October 2, 2023 through January 14, 2024.

For those with their own FedEx account, please visit fedex.com or contact your FedEx representative to learn more about how these demand surcharges can affect your business.

At the beginning of 2023, Shippo was proud to announce that we were the first multi-carrier shipping solution to offer native, discounted FedEx shipping labels. The three services we’ve been offering since then are FedEx Ground Economy, FedEx Ground Returns, and FedEx International Connect Plus.

These three service levels have been competitive since the start of the year and will continue to be throughout the holiday season. Stay tuned to find out how exactly FedEx’s demand surcharges will affect Shippo users. We will update this blog once that information is available.

DHL E-commerce Peak Season Surcharges

Following suit with the other three major carriers in the U.S., DHL has also announced that there will be no peak surcharges assessed to their customers this year as well! For many, DHL provides a valuable option for those looking to diversify their carrier mix due to their vast global network, excellent reliability, and discounted rates through Shippo as well!

How to Save Money on Shipping During the Holidays

The cost of shipping has been the number one challenge for merchants for much of 2023 as highlighted in this year’s State of Shipping Report. Saving money will continue to be top of mind for e-commerce merchants everywhere going into the holidays which is why Shippo is proud to offer discounted rates for all carriers mentioned above.

But, along with just using Shippo to access discounted shipping labels, there are other techniques to keep in mind for saving money on shipping during the holidays.

1. Use shipping automation: With this tool from Shippo, you can set your Shippo account to select the right label for each order every time. This way your fulfillment team doesn’t select a more expensive option by accident.
2. Diversify your carrier mix: Different carriers assess different rates for the same package. By using more than one carrier you can ensure you’re getting the best price for each parcel.
3. Use cheaper or free boxes: Carriers such as USPS often offer free shipping boxes to merchants. While you won’t be able to add your custom branding to these packages, they are still a great option for those looking to maximize on their margins for the next three months.

For other ways to save money on shipping during the holidays, be sure to check out our webinar “7 ways to save on E-commerce Shipping” and to learn how the largest retailers in the nation prepare for peak season, check out our webinar “Navigate Peak season the Way Retail 100 Does”.