Major parcel carriers like UPS and FedEx have started running into issues during peak season shipping, not only in handling the increased volume, but in being able to maintain a profit during the peak season as well.
To help alleviate these issues, UPS has recently announced a New Peak Surcharge that will be added to parcel deliveries this holiday season. This “surge” pricing affects specific service levels at specific times during the holiday season. In addition to these surcharges, both UPS and FedEx are looking at charging retailers for empty space on their trucks due to retailers overestimating their volumes during this time.
As the major carriers struggle to adjust to these new levels of demand, now more than ever it is important for your team to analyze your outbound shipping processes. With freight increases like this one as well as a higher level of delivery service expected from consumers, it is important to make sure your shipping process is as streamlined and cost efficient as possible.