Written by Rich Harkey. Rich is a logistics and transportation expert. He is the Corporate Director of Sales for Lojistic, and helps companies find ways to save money on shipping. With 27 years of experience working in the transportation/logistics industry, he brings a wealth of experience, knowledge and perspective to his clients. Rich is an Associate of Strategic Choice Partners.
UPS and FedEx 2022-2023 Peak Season Shipping Costs
It’s peak shipping season. That means shipping with UPS and FedEx is even more expensive than usual. And that’s saying a lot! Both carriers implement seasonal surcharges and bigger fees annually between September and January.
You need to know what to expect when shipping during peak season. So, we’ll break down this year’s peak surcharges for both UPS and FedEx and provide you with a list of key dates for guaranteed delivery by Christmas. As if super expensive seasonal shipping wasn’t enough, UPS and FedEx also raise their rates each year. We’ll shed a little light on the 2023 General Rate Increase (GRI), too.
While many of the peak shipping season surcharges are unavoidable, it’s important to understand how your costs fluctuate throughout the year so you’re better prepared to manage everything in the future. The fact of the matter is this: There are so many surcharges and fluctuations for a mere mortal to keep up with on their own.
Now, let’s get into the details of the 2022 – 2023 peak shipping season! Read below for everything you’ll need to know.
UPS Peak Season Surcharges, Fees and Key Dates
The following UPS Peak Surcharges will be effective through January 14, 2023, on U.S. Domestic, U.S. Import and U.S Export Shipments:
- Peak – Additional Handling Surcharge: $6.50/package
- Peak – Oversize Charge: $70.00/package
The following UPS Peak Surcharges will be effective between October 30, 2022 – January 14, 2023 on UPS Air Residential, UPS Ground Residential and UPS SurePost.
Peak/Demand Surcharge applies to customers who were billed for more than 20k packages during ANY week since 10/21. Use this link to get more information. (*)
(*) Note: The peak residential surcharge is calculated weekly and the charge is determined by the demand level and only applies to shippers that send 20,000 or more residential packages per week. The demand level is a representation of the residentials shipped compared to the weekly average of residentials shipped from June 5th – July 2nd, 2022. The charges range from $1.25 for a low demand level home delivery shipment all the way to a $7.00 charge for a 400%+ of baseline volume for express.
FedEx Peak Season Surcharges, Fees and Key Dates
The following FedEx Peak Surcharges will be effective through January 15, 2023 on U.S. Express Package Services, U.S. Ground Services and International Ground Services:
- Peak – Additional Handling Surcharge: $6.55/package
- Peak – Oversize Charge: $68.75/package
The following FedEx Peak Surcharge will be effective through January 15, 2023 on U.S Ground Services and International Ground Service:
- Peak – Ground Unauthorized Package Charge: $385.00/package
The FedEx Peak Surcharge applied to FedEx Ground Economy Package Services will vary through the peak season. See below for applicable rates and dates:
- $1.50/package – October 31 – November 27, 2022
- $2.50/package – November 28 – December 11, 2022
- $1.50/package – December 12, 2022 – January 15, 2023
The FedEx Peak Residential Delivery Charge will be effective October 31, 2022 – January 15, 2023 on FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate packages): See “peaking factor” chart on FedEx’s website here. (*)
(*) Note that the peak residential surcharge is calculated weekly and the charge is determined by the peaking factor and only applies to shippers that send 20,000 or more residential packages per week. The peaking factor is a representation of the residentials shipped compared to the weekly average of residentials shipped from June 6th – July 3rd, 2022. The charges range from $1.25 for a low peaking factor home delivery shipment all the way to a $7.00 charge for a 400%+ peaking factor for express.
Important Dates to Know for Guaranteed Delivery by Christmas
Want to keep your customers happy AND your shipping costs as low as possible? Of course! Here are all the key days that you’ll need to know, and the level of service you’ll need to purchase to get your packages delivered by Christmas:
- Ship By Date: December 8
- Carrier / Service Level: FedEx Ground Economy & UPS SurePost
- Ship By Date: December 14
- Carrier / Service Level: FedEx Ground & Home Delivery
- Ship By Date: December 15
- Carrier / Service Level: USPS Media Mail & Retail Ground
- Ship By Date: December 16
- Carrier / Service Level: UPS Ground
- Ship By Date: December 17
- Carrier / Service Level: USPS First-Class Mail
- Ship By Date: December 18
- USPS Priority Mail
- Ship By Date: December 20
- Carrier / Service Level: FedEx Express Saver & USPS Priority Express
- Ship By Date: December 21
- Carrier / Service Level: FedEx 2 Day and 2 Day AM & UPS 3 Day Select
- Ship By Date: December 22
- Carrier / Service Level: FedEx First, Standard and Priority Overnight & UPS 2nd Day Air
- Ship By Date: December 23
- Carrier / Service Level: FedEx Same Day Air & UPS Next Day Air
You can use this helpful calendar that details all the dates and carrier information you’ll need to get your packages to your customers by Christmas. View or download it here.
What Can I Do to Mitigate Peak Surcharges?
Shippers have a few options when it comes to mitigation. For those large shippers who expect to be subject to residential peak charges, it is often best to spread out their shipping over the peak period. For retailers that often have Black Friday sales, consider alternatives like multiple, smaller sales during the time period to spread shipments out.
No such alternative is readily available for oversize and additional handling, unfortunately, but keep in mind that every item of a shipping agreement is negotiable, including peak charges.
General Rate Increase for 2023
Every year, UPS and FedEx increase their rate. It’s known at the General Rate Increase or GIR. FedEx recently announced a 6.9% GRI for 2023. That’s the largest year-over-year rate increase in FedEx’s history! Here’s how the previous decade’s worth of rate increases have stacked up: General Rate Increase History Report.
Be sure to bookmark this page. It’ll be updated with all of the 2023 information as soon as UPS makes its announcement. You can use the report to compare UPS vs FedEx rate increases, see where the biggest surcharge increases occur and get tips & tricks on how to control or even reduce your shipping costs, despite carrier increases.
UPS hasn’t announced its 2023 GRI yet, but it’s expected that they’ll match FedEx. That’s what typically happens each year. Usually, UPS makes its GRI announcement at the end of October or in early November.
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