The 2019 holiday season is creeping up on us quickly. If you have not begun prepping, it’s time to start thinking about it. As shipping costs and solutions are always one of the most important aspects of the ecommerce industry, considering this year’s prices is going to play a large part. UPS and FedEx have announced their changes to their peak season surcharges, and they are fairly different from 2018. As with every year, demand for quick and low-maintenance shipping has risen, and all shipping companies need to adjust to stay in the game.
UPS has made some major changes to their 2019 peak season surcharges. The most important thing to note is that there will be NO residential peak surcharges. This year, staying more competitive with FedEx, they will be offering no additional charges on residential packages. This does have some impact on the prices of all other surcharges and eliminating residential surcharges can cut into profits.
- Additional handling now costs $3.60 per package compared to $3.15 in 2018, and will be applicable from 11/24-01/04.
- Large packages are $31.45 per packages compared to $26.20 in 2018, and will be applicable from 10/01-01/04.
- Packages that are over maximum limits will now be $250 per package, which is a huge increase from $165 in 2018 and these will be applied from 10/01-01/04.
FedEx will also be offering no residential peak surcharges for the second year, but they have announced rate increases for 2020. Since they also eliminated these charges in 2018, their prices are not seeing drastic differences for the most part, but some things have changed.
- Additional handling will cost $4.10 per package compared to $3.20 in 2018 and will be applied from 11/18-01/05.
- Ground unauthorized packages will now cost $435 per package, a huge increase from $165 last year and will applied from 10/21-01/05.
- Oversize packages will cost $37.50 per package compared to $27.50 in 2018 and will be applied from 10/21-01/05.
Every year customer demand and shipping expectations change. Shippers and carriers have had to adapt to those changes for 2019. It is set to be a great holiday season this year, and preparations are well underway here at IDS. If you would like to talk with us about controlling you shipping costs, contact us today.