A Breakdown of the 2021 Peak Season Surcharges
by Jason Stark
What are peak surcharges?
Peak surcharges are an additional cost of shipping during the busiest time of the year. These typically change from year to year.
Why are there peak surcharges?
During peak (usually the end of Oct to the beginning of Jan), the big shippers experience a huge influx of shipments. Sometimes in excess of 50% more than their usual volume. This leads to having to increase drivers, handlers, extending overtime, and more. All of this means an overall increase in the cost of doing business. In order to cope with this, they have introduced peak surcharges that typically last during the busiest times of the year.
What are the 2021 peak surcharges going to be?
Every shipper determines their surcharges individually, but they are typically implemented by service level. Below you can find a breakdown of the surcharges for FedEx, UPS, and the USPS.
FedEx (Oct. 4, 2021 - Jan. 16, 2022)
| Surcharge name | Applicable services | Surcharge amount | Effective date |
|---|---|---|---|
| Peak — Additional Handling Surcharge | U.S. Express Package Services U.S. Ground Services International Ground Service | $5.95 per package | Oct. 4, 2021–Jan. 16, 2022 |
| Peak — Oversize Charge | U.S. Express Package Services U.S. Ground Services International Ground Service | $62.50 per package | Oct. 4, 2021–Jan. 16, 2022 |
| Peak — Ground Unauthorized Package Charge | U.S. Ground Services International Ground Service | $350.00 per package | Oct. 4, 2021–Jan. 16, 2022 |
| Peak Surcharge | FedEx Ground® Economy Package Services | $1.50 per package $3.00 per package $1.50 per package | Nov. 1, 2021–Nov. 28, 2021 >Nov. 29, 2021–Dec 12. 2021 Dec. 13, 2021–Jan. 16, 2022 |
| Peak — Residential Delivery Charge (see below for additional information) | FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate® packages). | See Peaking Factor Chart below | Nov. 1, 2021–Jan. 16, 2022 |
| Residential Delivery Charge | FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate packages). | Additional $0.60 per package | Beginning Jan. 17, 2022 |
FedEx Peaking Factor Chart
| Peak — Residential Delivery Charge per Package by Peaking Factor | ||||
|---|---|---|---|---|
| Peaking Factor | >110%–200% | >200%–350% | >350%–500% | >500% |
| Charge per U.S. Domestic FedEx Ground® Residential Package | $1.15 | $2.25 | $3.50 | $5.00 |
| Charge per U.S. Domestic FedEx Express® Residential Package | $2.15 | $3.25 | $4.50 | $6.00 |
UPS INTERNATIONAL
| Service | Until Further Notice |
|---|---|
| UPS Worldwide Express Plus® | $0.11 |
| UPS Worldwide Express® | $0.11 |
| UPS Worldwide Saver® | $0.11 |
| UPS Worldwide Expedited® | $0.11 |
UPS Domestic (Oct. 31, 2021 - Jan. 15, 2022)
| %Abv Feb 2020 lvls | 110% - 200% | 200%-300% | 300%-400% | 400%-500% | >500% |
|---|---|---|---|---|---|
| Service Level | |||||
| UPS SurePost | $1.15 | $2.15 | $3.15 | $4.15 | $5.15 |
| UPS Ground Residential | $1.15 | $2.15 | $3.15 | $4.15 | $5.15 |
| UPS Next Day Air Residential | $2.15 | $3.15 | $4.15 | $5.15 | $6.15 |
| All Other UPS Air Residential | $2.15 | $3.15 | $4.15 | $5.15 | $6.15 |
This year, UPS is basing their surcharges on the percentage above the volumes they saw in February 2020. For example, if UPS experiences 301% more volume across their network than they did in February 2020, each package will receive either a $3.15 or $4.15 surcharge based on the service level.
UPS DAP
One very big advantage of using UPS DAP this year is that UPS has decided not to add any additional surcharges to this program. This can be a huge advantage as you won’t have to either absorb any cost increases or pass them on to your customers.
USPS (Oct. 3, 2021 - Dec. 26, 2021)
| Weight | 0-10 lbs | 0-10 lbs | 11-20 lbs | 11-20 lbs | 21-70 lbs | 21-70 lbs |
|---|---|---|---|---|---|---|
| Zone | 1-4 | 5-9 | 1-4 | 5-9 | 1-4 | 5-9 |
| $0.25 | $0.75 | $1.50 | $3.00 | $2.50 | $5.00 |
- $0.75 increase on all flat rate boxes and envelopes
With one integration, all surcharges are handled
EasyPost makes it simple to get access to the best shipping rates through a single integration. Our shipping API for ecommerce not only allows you to compare shipping rates but the peak season surcharges will automatically be reflected in those returned rates. This makes it easy for your team to continue shipping as they always have with no manual changes needed.
Get in touch with us to learn more about our modern shipping solutions.