Carriers anticipate high eCommerce volume to stress their networks in the 2021 peak season. Due to this, all major US carriers have announced surge pricing this peak season, and Deliverr will likewise have to implement surcharge pricing.
Read on to learn more about individual carrier peak surcharge pricing and why Deliverr is surcharging.
2021 Carrier Peak Surcharge Pricing
|Carrier||Surcharge||Start and End Dates|
|FedEx||$1.15 to $5.00 per Ground shipment|
$2.15 to $6.00 per Express shipment
|November 1st to January 16th|
|UPS||$1.15 to $5.15 per Ground shipment|
$2.15 to $6.15 per Air shipment
|October 31st to January 15th|
|USPS||$0.25 to $5.00 per shipment|
$0.75 per Priority Express shipment
|October 3rd to December 26th|
|Deliverr||$0.27 per unit for SKUs below 1lb|
$0.37 per unit for SKUs at or above 1lb
|October 22nd to January 16th
What is Deliverr’s peak surcharge?
From October 22nd to January 16th, a surcharge will be placed as follows:
- $0.27 per unit fulfilled for SKUs weighing less than 1lb
- $0.37 per unit fulfilled for SKUs weighing 1lb and above
This surcharge will apply regardless of sales channel or service level.
Why is Deliverr surcharging?
Due to sustained high volumes and anticipated high peak package volumes, national and regional carriers are aiming to curb their peak shipment volume by levying surcharges up to $6.15 per shipment.
Average warehouse labor rates are increasing by 40% this peak. We will use our peak surcharge to increase labor so we can continue to meet on-time shipping and delivery SLAs.
Why is Deliverr surcharging this particular amount?
We are able to surcharge less than the industry average for two key reasons:
- We place inventory close to demand so our shipments travel lower distances. This allows us to save on shipping costs.
- We are absorbing portions of the increased peak costs of warehouse labor and transportation so it has minimal impact on your business.