Navigating 2024 Holiday Shipping Rate Increases with FedEx and UPS
Navigating 2024 Holiday Shipping Rate Increases with FedEx and UPS
The holiday season is here, and for businesses, it means peak shipping demands—and higher costs. Both FedEx and UPS have announced surcharges and fee increases for the 2024 peak season, which will affect shipping costs from late fall through early 2025. Let’s look at what these changes mean, and how CustomBoxes.io is stepping in to support your business through this challenging time.
What’s Driving the Rate Increases?
With the holiday season upon us, FedEx has implemented several peak season surcharges that will last from September 30, 2024, through January 19, 2025. These fees are designed to manage the surge in holiday shipments, as well as the costs associated with expanding resources to meet demand. For businesses, these surcharges could lead to higher costs, especially for larger or specialized shipments.
FedEx Peak Surcharges for 2024
FedEx has introduced new surcharges that begin as early as September 30 and extend through January 19, 2025. Highlights include:
- Additional Handling Surcharge: $7.75–$10 per package
- Oversize Charge: $84.50–$100 per package
- Ground Unauthorized Package Charge: $450–$500 per package
- Demand Surcharge for Residential and Economy Services: Ranges from $0.30 to $8.25 per package, depending on the service level.
UPS Peak Surcharges for 2024
As with previous years, UPS has implemented peak season surcharges to manage the holiday rush. These surcharges are designed to offset the added expenses of increased package volumes, additional labor, and expanded capacity during this busy time. The 2024 UPS peak season charges, applicable from September through January, cover a range of delivery services and package types.
Additional Handling Surcharge Effective Dates:
- September 29, 2024 - November 23, 2024 ($7.75)
- November 24, 2024 - December 28, 2024 ($9.95)
- December 29, 2024 - January 18, 2025 ($7.75)
Large Package Surcharge
Effective Dates:- September 29, 2024 - November 23, 2024 ($84.75)
- November 24, 2024 - December 28, 2024 ($99)
- December 29, 2024 - January 18, 2025 ($84.75)
- September 29, 2024 - November 23, 2024 ($445)
- November 24, 2024 - December 28, 2024 ($495)
- December 29, 2024 - January 18, 2025 ($445)
Demand Surcharge for UPS Air, Ground Residential, and SurePost® Packages Effective Dates:
- October 27, 2024 - November 23, 2024 ($0.25)
- November 24, 2024 - December 28, 2024 ($0.50)
- December 29, 2024 - January 18, 2025 ($0.25)
Key Changes Impacting Businesses
With these rate hikes, businesses can expect significant increases in shipping costs, especially for larger and residential packages. The added costs may pose a particular challenge for small to medium-sized businesses that rely heavily on third-party logistics during peak season.
CustomBoxes.io’s Solution to Support Your Business
You may have noticed a slight increase in shipping costs recently, largely due to the holiday surcharges from major carriers like FedEx and UPS. However, we’re thrilled to share some good news: our rates for shipping 10x10x10 boxes to locations like Miami have significantly improved over time. In 2022, it cost $83 to ship these packages, but by working strategically with carriers, we brought that down to $52 in 2023, and now it’s as low as $24 in 2024. The more volume we handle, the better rates we can negotiate on your behalf. You can help us continue this trend by letting us know where you currently source your custom boxes. Together, we can keep driving down costs and passing the savings on to you.
At CustomBoxes.io, we understand that increased shipping costs can squeeze budgets and impact profitability. Our goal is to help your business stay competitive, even when costs rise. Here’s how we’re supporting you this season:
- Optimized Volume Shipping Solutions: To help you save on shipping, we recommend bulk ordering to reduce per-unit shipping costs. Our team can assist you in planning for high-volume purchases, ensuring you’re prepared for demand without the added cost of frequent, smaller shipments.
- Flexible Fulfillment Strategies: Working with our clients, we develop tailored shipping strategies to maximize efficiency. Whether it’s utilizing regional fulfillment centers to minimize distance-related charges or designing efficient box packaging that reduces additional handling surcharges, we’re here to make your logistics as cost-effective as possible.
- Sustainable and Economical Box Options: By using CustomBoxes.io’s recyclable materials and minimalist black ink design, you’re not only supporting sustainable practices but also cutting costs tied to excessive packaging. Our boxes are lightweight yet sturdy, which reduces shipping weight and minimizes handling fees.
How to Plan Ahead
To make the most of this peak season, we encourage early planning and ordering. Businesses that prepare ahead can often avoid the highest surcharges by shipping before peak demand dates. In addition, consider using alternative shipping methods or pickup options to reduce last-mile delivery costs.
At CustomBoxes.io, we’re here to help you navigate the complexities of holiday shipping. Our team is dedicated to providing practical, affordable solutions so you can focus on delivering great products to your customers, no matter the season.
Contact us today to discuss your holiday shipping needs and explore how we can support your business with custom, cost-effective packaging solutions.