Shipping Rates Continue to Increase Amid COVID-19
- Jun 5, 2020
- 1 min read
Fedex follows UPS’ path to increase rates during COVID-19. It seems the challenges they are facing around packages that they are unable to deliver and require multiple attempts or a return are one of the driving costs to this expense. Factor that in with a large spike in volume as all of us increase our use of online shipping providers it seems a perfect storm is occurring for the carriers. This peak surcharge of $0.30/package for domestic packages to $30 for oversized domestic packages further highlights how complicated it is to calculate the accurate rate. Now more than ever it is critical to have technology that puts the user in the driver seat, seeing the up to date estimated rate by delivery date, allowing them to make the most informed decision!
Take a look at all of the rate surcharges (including the new peak surcharge) that are in the FedEx price book.
It is clear that the logistics landscape is becoming increasingly complex as FedEx and UPS align their rate structures. With peak surcharges and base rate increases now a recurring reality, businesses are feeling the pressure to optimize every single package. Navigating these fluctuating costs is very similar to the precision required in customs brokerage services, where having the right data at your fingertips is the only way to avoid hidden fees and ensure that shipments move across borders—or just across the country—without unexpected financial hits.