Continued pressure on carrier capacities has led carriers such as FedEx, UPS and now DHL to implement additional shipping surcharges in advance of the traditional peak season. As this timing is quickly approaching this peak period, planning for this is critical. DHL has now released its peak surcharge schedule as well.
The recently announced USPS increases will primarily be applied to First Class type mail. Parcel Select rates will increase slightly for those shippers dropping parcels upstream in either the DSCF/DBMC. However, shippers who use UPS/FDX for SurePost/SmartPost get their packages dropped into the DDU (local Post Office). It looks like USPS will not increase those particular rates. Noteworthy because both UPS/FDX would pass it directly through to both SurePost/Smartpost customers.
The recently announced USPS increases will primarily be applied to First Class type mail. Parcel Select rates will increase slightly for those shippers dropping parcels upstream in either the DSCF/DBMC. However, shippers who use UPS/FDX for SurePost/SmartPost get their packages dropped into the DDU (local Post Office). It looks like USPS will not increase those particular rates. Noteworthy because both UPS/FDX would pass it directly through to both SurePost/Smartpost customers.
DHL, despite having a very limited service offering in Domestic US small parcels , will have some “temporary/Peak surcharges” beginning Oct 3rd through December 25th . DHL will apply these surcharges primarily to their Ecommerce light weight type services like DHL SmartMail (DHL version of UPS’s SurePost/FedEx’s Smartpost). Although DHL offers some express options in select cities like Atlanta, Chicago etc., they remain very cautious in expanding their small parcel footprint. They are not looking to mix it up with the “Big Boys” (UPS/FDX). As we all know, Peak operations not only bring on surcharges, they also produce a huge spike in carrier costs. DHL will certainly want to avoid adding as many unnecessary costs to their already razor thin margins.
Hedging for Peak Shipping at this point will remain a challenge. Shippers who have not pre-planned for this Peak may be out of luck. Shippers who did not plan ahead and look into shipping options to protect their volumes and mitigate costs may have to absorb the impact. Carrier negotiations as far as “Peak volume” thresholds may be possible, but those levels may be changed in the coming month. UPS or FDX and FedEx are likely to implement shipping capacity limits and surcharges again as they did in 2020.
Hedging for Peak Shipping at this point will remain a challenge. Shippers who have not pre-planned for this Peak may be out of luck. Shippers who did not plan ahead and look into shipping options to protect their volumes and mitigate costs may have to absorb the impact. Carrier negotiations as far as “Peak volume” thresholds may be possible, but those levels may be changed in the coming month. UPS or FDX and FedEx are likely to implement shipping capacity limits and surcharges again as they did in 2020.
AFMS has been assisting it’s clients over the last 18+ months to be prepared for another challenging heavy Fall/WInter shipping season. AFMS will review any prospect for no charge to help identify areas of concerns and possible solutions.
FedeX: https://www.fedex.com/en-us/shipping/current-rates/surcharges-and-fees.html#peak-surcharge
