Shipping Carrier Rate Change Updates

Additional Handling, Large Package, Over Max Limits

What’s changing this year?
There is an extra week that the demand surcharges on large packages will be assessed compared to last year: Sept 29, 2024 – Jan 18, 2025.

For the 2024-2025 peak season, UPS has separated the demand surcharges into three periods. Each period represents a significant increase over last year’s demand surcharges, with the Nov 24 to Dec 28 surcharges being the highest increase.

Here’s what the per package surcharges look like:

All Air, Ground Residential, and SurePost Packages (No Volume Requirement)

What’s changing this year?
In addition to the volume-based demand surcharges, UPS is bringing back demand surcharges on all Air, Ground Residential, and SurePost packages with no volume requirements.

As with the large package surcharge, there’s an extra week that these surcharges will be in effect Oct 27, 2024 – Jan 18, 2025. Also, like the large package demand surcharges, UPS is implementing three surcharge periods, one higher surcharge period, bookended by two smaller, but still significant surcharge periods.

Here’s what the per package surcharges look like:

Volume-based Surcharges for High-volume Shippers: Air, Ground Residential, and SurePost Packages

What’s new this year?
The volume-based demand surcharges are the same as last year, except shippers will incur an extra week of the demand surcharges between Oct 27, 2024 – Jan 18, 2025.

The volume-based surcharges affect anyone who’s shipped over 20,000 packages of combined Ground Residential, SurePost, and Air volume in any given week after October 2023.

UPS determines your “baseline” by taking your average weekly volume for the applicable service for June 2, 2024 – June 29, 2024. If your average weekly volume from September 1, 2024 – September 28, 2024 is less than 80% of your average June volume, then UPS will adjust your baseline calculation to be based on your September volume instead of your June volume. Like last year, there are six tiers ranging from 105% to >400% of baseline volume.

Surcharges are effective from October 27, 2024 – January 18, 2025: 
 

Additional Handling, Oversize Package, Additional Demand Surcharges

As FedEx prepares for high demand during the holiday shipping season, they are adjusting their networks to best deliver for customers. The surge in volume is expected to carry over into the new year.

To continue providing customers with the best possible service, they are implementing the following Demand Surcharges and fees.

Residential Delivery Charge per Package by Peaking Factor

Residential Delivery Charge will adjust dynamically each week. During each calculation week (defined below), customer’s shipping volume and peaking factor will be calculated based on the formula set forth below to determine the surcharge amount applied for the corresponding application week (defined below). A two-week lag will apply between the shipping activity calculation and the surcharge application. See the table for all calculation weeks and application weeks.

Residential Delivery Charge calculation weeks/application weeks schedule

“Calculation week” is the week during which customer’s shipping volume is calculated. “Application week” is the week during which the surcharge is applied based on the corresponding calculation week.

For customers at the enterprise level who ship more than 20,000 residential* and FedEx Ground Economy packages (total for U.S. domestic shipments) during a calculation week, the Demand — Residential Delivery Charge will apply for the corresponding application week. The Demand – Residential Delivery Charge will be assessed in addition to the Residential Delivery Charge and any contracted discount or cap the customer may have on the Residential Delivery Charge will not apply to the Demand – Residential Delivery Charge.

The amount charged per package during the application week will be based on a peaking factor, reflected as a percentage increase in the chart below, which is determined by dividing the residential* and FedEx Ground Economy packages shipped during the corresponding calculation week by the weekly average residential* and FedEx Ground Economy packages shipped June 3, 2024-June 30, 2024, and then multiplying by 100. Peaking factor and amount charged are determined based on the type of U.S. package service.

For purposes of calculating weekly volume during any calculation week that contains a holiday, weekly package volume will be adjusted to account for the one fewer operating day by multiplying the volume tendered during the week by 5 and then dividing by 4. For example, if a customer’s weekly volume tendered is 10,000 packages, simply multiply 10,000 by 5, then divide that number by 4 to calculate the weekly volume during a calculation week.