2020 has been called “the year of surcharges,” but carriers are continuing to impose peak surcharges in 2021, citing high demand and capacity concerns. As shown in the charts below, peak surcharges for FedEx and UPS are in effect until further notice. Last week, FedEx announced an additional $0.30/parcel surcharge for Express and Ground Residential packages that will take effect Feb. 15.
These rate increases are in addition to the carriers’ annual General Rate Increases (GRIs). FedEx and UPS shipping rates increased an average of 4.9% (effective Jan. 4 and Dec. 29, respectively), while USPS raised their Priority Mail service 3.5% and First-Class Package service 6.2% starting Jan. 24.
An effective way for shippers to mitigate the impact of these rate increases and the volume restrictions imposed by carriers is to implement a multi-carrier strategy. Our team has the expertise and proprietary technology to help clients identify the optimal shipping solution for their business—plus, we’re partnered with premier shipping automation software companies to ensure retailers have access to the best tools and options available.