UPS and FedEx Peak Surcharges Announced for 2019

September 24, 2019 at 8:23 AMJerry Spelic
2019 UPS and FedEx Peak Surcharges

UPS and FedEx have both announced that they will not apply peak season surcharges on residential deliveries this holiday shipping season. However, both companies will continue peak surcharges on large shipments and those requiring additional handling during the holidays.

During the 2018 holiday season, UPS applied a per package residential peak delivery surcharge of $0.28 for ground and $0.99 for air shipments. This year, the company is leveraging its expanded air and ground capacity, and automated sorting hubs and processing facilities, to pass cost savings on to customers in the form of no residential delivery peak surcharge. More than 75% of UPS's small package volume will pass through these automated facilities in peak 2019.

“We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said David Abney, UPS Chairman and CEO. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”

This is the third holiday season FedEx has not added additional peak surcharges on residential deliveries. With UPS and FedEx both not applying a residential delivery surcharge this year, it is great news for e-commerce retailers and online shoppers. Online sales are expected to grow 14% to 18% this holiday season, and in the past, these residential delivery surcharges were passed along to shoppers in the form of higher shipping costs.

It’s important to remember that both UPS and FedEx are implementing peak surcharges this holiday season on larger packages and those that require additional handling.

UPS peak surcharges will apply to larger packages from October 1 through January 4:

  • $31.45 per package for shipments that qualify as large (a 20% increase from 2018)
  • $250.00 per package for shipments that qualify as over maximum limits (a 51.5% increase)

UPS will apply peak surcharges for additional handling from November 24 through January 4:

  • $3.60 per package for shipments that require additional handling (a 14% increase)
FedEx peak surcharges will apply to larger packages from October 21 through January 5:

  • $37.60 per package for shipments that qualify as oversize (a 36.7% increase from 2018)
  • $435.00 per package for shipments that qualify as unauthorized (a 190% increase)
FedEx will apply peak surcharges for larger packages from November 18 through January 5:

  • $4.10 per package for shipments that requires additional handling (a 13.8% increase)

The growth of e-commerce and online shopping for large and awkwardly shaped products such as mattresses and furniture has necessitated these surcharges because heavy and bulky packages can’t move through the automated systems in which UPS and FedEx have heavily invested. Through these surcharges, shippers are paying the price for the loss of efficiency these packages represent.

If you’re a retailer, you should pay close attention to this year’s UPS and FedEx peak season surcharges so you can make any needed changes now to help ensure you remain profitable during the busy holiday shipping (and shopping) season. A good first step would be to look at the large packages you ship and determine which will be impacted by the peak surcharges.

The UPS and FedEx additional handling peak surcharge will be triggered by packages that:
  • Weigh more than 70 pounds
  • Measure more than 48 inches along its longest side and more than 30 inches along its second-longest side
  • Are not enclosed in traditional corrugated cardboard packaging

UPS Large Package and FedEx Oversize Package surcharges will be triggered by any package that exceeds 96 inches in length or 130 inches in length and girth.

UPS Over Maximum Limit and FedEx Unauthorized Package surcharges will be triggered by any package that exceeds 150 lbs., 165 inches in length and girth combined, or longer than 108 inches.

Surcharges for these packages are already high; additional UPS and FedEx peak surcharges represent an added dent to your bottom line. When deciding how to ship your small package shipments, or if you should use LTL to ship your oversized or heavy packages, you need an expert on your side. PartnerShip manages shipping programs for over 140 associations, providing exclusive discounts on small package shipments to their members. To find out if you qualify or to learn how you can ship smarter, contact us today.

Get Control of Your Holiday Shipments

October 11, 2017 at 11:27 AMLeah Palnik
Get Control of Your Holiday Shipments

As a consumer, it might feel like it’s too soon to start thinking about the holidays, but retailers know that waiting is not an option. If you’re in the retail industry, you’ve probably already been receiving shipments from your vendors and preparing for the increase in business. As you’re getting ready for this busy time of year, there are a few things you’ll want to keep in mind.

Set up inbound management
While you’re forecasting sales and preparing your inventory for the holiday season, it’s more important than ever to make sure you are properly managing your inbound shipments. You need to have a good relationship with your vendors and be assured that they’ll be able to deliver your goods on time. You need efficient routings set up and you need to be able to plan ahead so you can avoid costly expedited services when you’re replenishing throughout the season.

This is where working with a third-party logistics (3PL) provider or broker can make a big difference. A quality 3PL will create routings for you and ensure vendor compliance. They can also make sure you’re getting the best rates and service options for your time-sensitive shipments, by utilizing their buying power in the market.

Make sure your website is prepared for increased traffic
Online shopping is more popular than ever and will be a crucial part of your sales this holiday season. Don’t let technical issues get in the way of sales, when customer traffic to your site will likely be the highest of all year. Use a reliable web host and develop back-up plans in case of problems.

Clearly communicate shipping deadlines
There are some of us who are guilty of waiting until the last minute to do their holiday shopping. When’s the last day to order for Christmas? Do you offer expedited options or any special seasonal guarantees that could give you a leg up over the competition? Managing customer expectations will increase your customer satisfaction. Clearly communicate this information on your website, during the purchasing process, and in emails to your subscribers.

Consider special promotions
Now is the time to pull out all the stops to maximize your sales. People are looking to buy, and it’s your job to incentivize them to bring their hard earned dollars to your store. According to a report by the National Retail Federation, 50% of shoppers cited a limited-time sale or promotion as the reason they were swayed to purchase an item they were on the fence about.

Even more notable, 64% of shoppers said that free shipping has influenced them to make a purchase. Offering free shipping has become the new normal in the world of ecommerce. If you’re worried about the costs of “free shipping” there are several different strategies you could try. For example, try setting the free shipping threshold above your average order amount to increase the amount people spend when making a purchase on your site. When executed properly, consumers will be more likely to add items to their cart to meet the minimum and it becomes a win-win.

Be aware of holiday surcharges
UPS recently introduced an additional surcharge for residential shipments during their peak season. The charge applies during two of the busiest online shopping days of the year, Black Friday and Cyber Monday, and for the week before Christmas. We don’t have to tell you that these are very critical parts of the year for your online orders. These charges can add up quickly and cut into your profits for the season. The good news is, FedEx won’t be following in their footsteps. The UPS competitor is only implementing an additional surcharge for oversized packages and special handling. Evaluate how you’re shipping out customer orders now and make any necessary changes before these times hit.

Set up a streamlined returns process
With increased holiday sales comes the inevitable – returns. According to a Narvar Consumer Report, 74% of customers said return shipping fees will prevent them from making a purchase. On the flip side, 72% said that a “no questions asked” return policy would make them more likely to buy from a retailer. The influence of the return policy on the purchase decision is undeniable. Make your return policy as customer friendly as possible and communicate it clearly at the beginning of the shopping experience. Also, take proactive steps like providing return labels in the original order and offering in-store returns so it is less of a headache for you and your customers.

Striking a balance with inventory, preparing your online store for increased traffic, and being mindful of your shipping options over the holidays can help make your season bright. When you work with PartnerShip, our shipping experts will help you with routings and ensure you’re receiving competitive pricing on your inbound and outbound shipments so you can focus on your business. Contacts us for a free shipping analysis to see how we could help you.

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Are You Ready for Small Business Saturday?

November 20, 2015 at 10:17 AMLeah Palnik

Mark your calendars! Small Business Saturday® this year is November 28th. Since 2010, this day has been dedicated to supporting small businesses and local communities across the country. Last year, 88 million people got out to Shop Small®, making this "small" day a pretty big deal. 

If you own a small business be sure to take advantage of the free marketing materials you can use to promote the day and encourage shoppers to visit your business. The more you do to promote it, the more customers you'll see come through your door. 

If you're interested in shopping small, click here to find participating businesses for dinning, shopping, entertainment and more. You'll find a great tool to search for local merchants in your community that you can help support with your loyalty over the holiday shopping season.

Not only is PartnerShip a small business, but we also actively support thousands of other small businesses across North America with discounted shipping services and unique, value-added shipping solutions. We're glad to support this annual event which is sponsored by American Express. For more information on PartnerShip services and how we can help support your small business, click here to contact us.

Happy National Small Business Week!

May 4, 2015 at 9:00 AMMatt Nagel

PartnerShip prides itself on being able to help businesses of all shapes and sizes save on their shipping costs. Small businesses are an integral part of the United States economy and, every year since 1963, the President of the United States has issued a proclamation announcing a National Small Business Week recognizing the critical contributions of America’s entrepreneurs and small business owners. More than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year. This year, May 4-8th has been designated as the week to highlight the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories.

The U.S. Small Business Administration (SBA) is the organization that coordinates this yearly event, and has designated this year's theme as "SBA: Dream Big. Start Small."

The week will highlight small businesses with events in Miami, Los Angeles, San Antonio, New York City and culminating in Washington, D.C. where national winners will be recognized and awarded.  Additionally, recognition events throughout SBA’s 10 Regions and 68 Districts will be held throughout the months of May and June.

If you're interested in learning more about National Small Business Week, you can visit the SBA website. There you'll find a schedule of both live and online events and other helpful information.


eCommerce Benchmarks for Your Business

March 25, 2015 at 9:44 AMLeah Palnik