Peak and Other Carrier Surcharges
Configure carrier surcharges for your organization's account.
About carrier surcharges
Carrier surcharges are extra costs that carriers assess for shipping packages, typically to cover fluctuating operational expenses. Peak season surcharges, also known as demand surcharges, are temporarily added by carriers to their base shipping rates during periods of high shipping demand.
This document provides information about carrier peak/demand surcharges for 2023 and guidance to configure carrier surcharges for your organization's Shipium account.
Carrier contract required for configuration
The Shipium platform supports configuration of carrier surcharges for your organization's account. However, to configure carrier surcharges for your organization within the Shipium platform, you first must have an established contract with the desired carrier.
Peak/demand surcharges by carrier
Shipium's supported carriers are listed in the following table, with a designation of whether they implement peak/demand season surcharges. A link to the carrier's documentation is included for carriers that assess peak season surcharges. Updates will be made to carriers with a To Be Determined (TBD) status as soon as the carriers announce their peak season surcharges.
| Carrier | Peak season surcharges | Carrier documentation |
|---|---|---|
| AirTerra | To Be Determined (TBD) | |
| Asendia | TBD | |
| AxleHire | No | Not Applicable (N/A) |
| Better Trucks | TBD | |
| CDL | TBD | |
| DHL | TBD | |
| FedEx | Yes | Demand Surcharges |
| GLS | Yes | Peak Season Surcharge |
| Lonestar Overnight (LSO) | Yes | Peak Surcharges |
| Maergo | TBD | |
| Meal Plan Delivery | TBD | |
| OnTrac (Lasership) | Yes | Demand Surcharges |
| OSM | TBD | |
| Pandion | No | N/A |
| Passport | TBD | |
| SmartKargo | No | N/A |
| T-Force | TBD | |
| UPS | Yes | Peak Demand Surcharges |
| UPS Mail Innovations | Yes | Peak Demand Surcharges |
| USPS | No | N/A |
| Veho | No | N/A |
Carriers with peak/demand surcharges
FedEx
| Surcharge | Service method | Cost | Effective date | 2022 cost comparison |
|---|---|---|---|---|
| Demand — Additional Handling Surcharge | - U.S. Express Package Services - U.S. Ground Services - International Ground Service | $6.95 per package | Oct. 2, 2023–Jan. 14, 2024 | $6.55 (6% increase) |
| Demand — Oversize Charge | - U.S. Express Package Services - U.S. Ground Services - International Ground Service | $73 per package | Oct. 2, 2023–Jan. 14, 2024 | $68.75 (6% increase) |
| Demand — Ground Unauthorized Package Charge | - U.S. Ground Services - International Ground Service | $410 per package | Oct. 2, 2023–Jan. 14, 2024 | $385 (6.5% increase) |
| Demand Surcharge | FedEx Ground® Economy Package Services | - $1.60 per package - $2.60 per package - $1.60 per package | - Oct. 30, 2023–Nov. 26, 2023 - Nov. 27, 2023–Dec. 10, 2023 - Dec. 11, 2023–Jan. 14, 2024 | - $1.50 (6.7% increase) - $2.50 (4% increase) - $1.50 (6.7% increase) |
| Demand — Residential Delivery Charge | - FedEx Express - FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy, and FedEx One Rate® packages) | See peaking factor chart below. | Oct. 30, 2023–Jan. 14, 2024 |
Demand — Residential Delivery Charge per Package by Peaking Factor vs Weekly Volumes between June 5, 2023, and July 2, 2023
| > 105%–125% | > 125%–150% | > 150%–200% | > 200%–300% | > 300–400% | > 400% | |
|---|---|---|---|---|---|---|
| FedEx Ground® | $1.35 | $1.85 | $2.10 | $2.65 | $4.50 | $6.35 |
| FedEx Express® | $2.40 | $2.90 | $3.15 | $3.70 | $5.55 | $7.40 |
GLS
GLS will apply a peak season surcharge from October 15, 2023, through January 12, 2024. The peak season surcharge will be applicable on all shipments and applied in addition to other standard accessorial fees and surcharges.
| Surcharge | Cost |
|---|---|
| Residential/ Low Commercial Density Area | $0.65 per piece |
| Special/Additional Handling | $4.95 per piece |
| Large Package Surcharge (GRT) | $9.95 per piece |
| NEW Over Max Limits | $350.00 per piece |
Lone Star Overnight (LSO)
LSO will assess a flat peak season surcharge of $1.50 on residential deliveries from October 30, 2023, to January 7, 2024. Additionally, LSO is announcing a general rate increase (GRI), effective January 1, 2024, that will average 5.9% on base rates.
OnTrac (Lasership)
A demand residential surcharge will be applied to residential packages shipped on or after October 28, 2023, through and including January 12, 2024 (the "demand period"). See below for Demand Period for OnTrac Logistics, Inc.
During the demand period, the demand residential surcharge will be calculated as set forth below. The demand residential surcharge will be assessed in addition to the shipper's residential delivery fee surcharge, or any other applicable surcharges. Any contracted discount(s) that the shipper may have on the residential delivery fee surcharge will not apply to the demand residential surcharge outlined below.
| Baseline volume | Cost |
|---|---|
| > 105%-125% of Baseline Volume | $1.35 per package |
| > 125%-150% of Baseline Volume | $1.85 per package |
| > 150%-200% of Baseline Volume | $2.15 per package |
| > 200%-300% of Baseline Volume | $2.60 per package |
| > 300%-400% of Baseline Volume | $4.45 per package |
| > 400% of Baseline Volume | $6.40 per package |
United Parcel Service (UPS)
A demand surcharge will apply to packages that require additional handling and large packages for all U.S. domestic, U.S. import, and U.S. export shipments for qualifying customers. A demand surcharge will apply to all packages that are over maximum limits for all U.S. domestic, U.S. import, and U.S. export shipments. The demand surcharges will apply in the amounts set forth below.
| Surcharge | Service method | Cost | Effective date | 2022 cost comparison |
|---|---|---|---|---|
| Demand — Additional Handling Surcharge | - U.S. Domestic - U.S. Export - U.S. Import | $6.90 per package | Oct. 1, 2023–Jan. 13, 2024 | $6.50 (6% increase) |
| Demand — Large Package Surcharge | - U.S. Domestic - U.S. Export - U.S. Import | $74.90 per package | Oct. 1, 2023–Jan. 13, 2024 | $70.00 (7% increase) |
| Demand — Over Maximum Limits | - U.S. Domestic - U.S. Export - U.S. Import | $410 per package | Oct. 1, 2023–Jan. 13, 2024 | $385 (6.5% increase) |
| Demand — Residential Delivery Charge | - UPS Air Residential - UPS Ground Residential - UPS Surepost Packages | See peaking factor chart below. | Oct. 29, 2023–Jan. 13, 2024 |
Demand — Residential delivery charge per package by peaking factor vs weekly volumes between June 5, 2023, and July 2, 2023
| > 105%–125% | > 125%–150% | > 150%–200% | > 200%–300% | > 300–400% | > 400% | |
|---|---|---|---|---|---|---|
| UPS SurePost® | $1.35 | $1.85 | $2.15 | $2.60 | $4.45 | $6.40 |
| UPS Ground Residential | $1.35 | $1.85 | $2.15 | $2.60 | $4.45 | $6.40 |
| UPS Next Day Air Residential | $2.40 | $2.90 | $3.20 | $3.65 | $5.50 | $7.50 |
| All Other UPS Air Residential | $2.40 | $2.90 | $3.20 | $3.65 | $5.50 | $7.50 |
UPS Mail Innovations (UPSMI)
One or more peak surcharges will apply to certain pieces tendered to UPS-MI for shipment during a peak period. Peak surcharges apply cumulatively if a piece meets more than one of the specified criteria. Peak surcharges apply in addition to any other applicable charges. No waiver, discount, or reduction of any type to the peak surcharges shall apply unless UPS-MI agrees in writing to such waiver, discount, or reduction with specific written reference to the peak surcharges.
Configure carrier surcharges for your account
You can configure peak/demand and other surcharges for your organization's account by accessing the rates for your desired carrier in the Shipium Console. Your Implementation team member will assist you with this configuration.
FAQ
Q: If my organization doesn't have peak surcharges negotiated with a carrier, can I set all of a carrier's applicable peak surcharges to a zero amount without having to configure each one individually?
A: Yes. You can configure a carrier account to be exempt from peak surcharges within the Shipium Console. Your Implementation member can help you configure this setting.
Q: Which USPS surcharge field is the correct one to use for including a surcharge for packages over 22 inches long?
A: The USPS Additional Handling Length surcharge is for packages 22 to 30 inches in length. The USPS Handling Extra Length surcharge is for packages over 30 inches long.
Updated 5 months ago