In late 2020, shipping carriers like UPS increased their peak surcharges to reflect the needs of the holiday season. However, due to the pandemic, last year’s peak season was one of the busiest quarters on record. As a result, these peak surcharges were extended into the early months of 2021. UPS recently announced an extension for the holiday season prices. These increases could cause your overall costs to remain higher throughout the year. Here's what you need to know about these peak surcharges, along with some solutions to help you lower your shipping costs.
Peak Surcharges Extension
As of May 23, 2021, UPS announced that peak surcharges for international and national shipments will remain in place until further notice. Additionally, those businesses using manufactures overseas will see an increase in prices from shipments originating from certain provinces in Asia. Below are the pricing increases you may incur with your orders.
International Rates for China Mainland and Hong Kong:
- UPS Express Plus: $1.36 per lb.
- UPS Worldwide Express: $1.36 per lb.
- UPS Worldwide Saver: $1.36 per lb.
- UPS Worldwide Expedited: $1.32 per lb.
- UPS Worldwide Express Freight: $2.15 per lb.
- UPS Worldwide Express Freight Midday: $2.15 per lb.
International Rate for Taiwan:
- UPS Express Plus: $0.57 per lb.
- UPS Worldwide Express: $0.57 per lb.
- UPS Worldwide Saver: $0.57 per lb.
- UPS Worldwide Expedited: $0.52 per lb.
- UPS Worldwide Express Freight: $1.47 per lb.
- UPS Worldwide Express Freight Midday: $1.47 per lb.
Until further notice, UPS Ground Residential and UPS SurePost will continue to incur peak surcharges of $0.30 per package. Holiday season handling and large packages pricing increases will also remain at $3.00 per packaging for additional handling and $31.45 per package for larger packages.
Related Article: How to Overcome Retail Shipping Struggles of 2021
Xparcel Peak Surcharge Solution
Although most of these peak surcharges have been in place for months, the overall shipping cost increase could have lasting impacts on your business. Historically, eCommerce sellers stock up on holiday merchandise in the summer months. This includes ordering large quantities from international sources. This year, retailers should plan to order their inventory sooner to beat the holiday season rush the industry has already been experiencing. As a result, even costs from warehouse to customers may also feel heavier. To combat this increased overhead, it’s crucial that your business uses an efficient shipping solution like Xparcel.
Xparcel Ground and Xparcel Expedited are the ideal solutions for cutting your shipping costs and helping you prepare for high volumes of inventory and orders. Using the power of the Xparcel software, the system selects a network of carriers, both local and national, that can deliver your orders quickly at the lowest cost possible.
Since this solution is exclusive to Rakuten Super Logistics, your business will also reap the benefits of our shipping network and carrier discounts only accessible to 3PLs. Your inventory will be in multiple warehouses closest to your customers to allow access to local carriers and significantly reduce your cost.
Related Article: Benefit of Xparcel Expedited
As eCommerce demand continues to weigh heavily on the supply chain, online sellers all across the US may be facing even more peak surcharges as the true holiday season approaches. Now is the time to put the most efficient shipping and fulfillment strategy in place and prepare your business for the season to come.
Ready to cut your costs and improve your shipping speed? Get started with Xparcel today.
Rakuten Super Logistics (RSL) is the leader in eCommerce order fulfillment services and freight brokerage. RSL offers national fulfillment services and a network of 15 US fulfillment centers located in Anaheim (CA), Atlanta (GA), Austin (TX), Chicago (IL), Denver (CO), Houston (TX), Las Vegas (NV), Miami (FL), Olean (NY), Reno (NV), Salt Lake City (UT), and Scranton (PA). Their state-of-the-art technology allows for integration with popular shopping cart platforms and online marketplaces including Amazon, Big Commerce, Channel Advisor, eBay, Magento, ShipStation, Shopify, Volusion, Walmart Marketplace, and WooCommerce.
Rakuten Super Logistics is a leading eCommerce order fulfillment company that provides the scalability, flexibility, and cost savings retailers demand.
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