“To serve you better, we have raised our prices…again” – Carrier Companies
Peak Surcharge refers to the charge increases carriers impose in addition to their base rate during high demand periods such as the holiday season. However, the global pandemic last year has seen a general surge in eCommerce sales, leading to a rise in surcharges by the carrier companies, that retailers didn’t anticipate.
With the massive uptick in online sales, carriers like FedEx, UPS, DHL, and USPS reacted by increasing fees and stopping Guaranteed Service Refunds (GSRs) or Late Package Refunds (LPRs) – now considered the “new normal.” Following is information on surcharge increases by carrier:
FedEx: FedEx Express package and freight standard list rates increased an average of 4.9% for U.S., U.S. export, and U.S. import services. FedEx Ground and FedEx Home Delivery standard list rates increased an average of 4.9%.
UPS: Peak Surcharges are subject to change and peak periods may be extended or otherwise changed. It is advisable to check for the surcharge updates from UPS before making any shipment plans.
DHL: DHL announced a 4.9% increase on all US shipping effective January 1, 2021. The company has a history of setting annual increases but not changing those throughout the year. Check DHL surcharge rates before planning any shipments.
These increased surcharges make demand forecasting a challenge for retailers. All the major carriers have announced that peak surcharges for national and international shipments are here to stay for the foreseeable future. In such a scenario, it makes sense for online retailers to work with a Third-Party Logistics (3PL) partner for efficient order fulfillment at a more competitive price.
An efficient, professional 3PL can help you manage high inventory volumes and orders with the surge in demand. 3PLs usually have partnerships with local, regional, national, and international carriers to help you deliver your orders at the lowest cost possible and usually get volume discounts not accessible to individual companies.
With online sales increasing, eCommerce retailers may face even more surcharges once the as the holiday season approaches. If you want to avoid paying too much in shipping costs with faster delivery to delight your customers, then engaging a 3PL as a strategic logistics partner may be the perfect solution. XPDEL is a leading 3PL with a nationwide network of fulfillment centers that helps eCommerce retailers with expert order fulfillment.
How XPDEL Can Help
XPDEL’s Logistics Execution Platform (LEP) is a user friendly versatile platform capable of rate shopping and ship method selection to meet delivery expectations at the lowest cost by utilizing sophisticated algorithms. XPDEL’s robust technological infrastructure backed by an extensive carrier network provides an unmatched advantage to eCommerce retailers. With the upcoming holiday season right around the corner, it is time for you to consider having the right fulfillment partner so you can focus on your products and business.
XPDEL is on a mission to help brands grow and become a partner in their growth story. Our commitment to delivering results is backed by our in-house supply chain platforms, such as our Fulfillment Execution Platform (WMS) integrated with your selling channels to provide an authentic omnichannel experience to your customers. Our operations are backed by advanced technology that gives a competitive edge to our clients.