Major Carriers Announce 2022-2023 Holiday Shipping Surcharges: What Businesses Need to Know
As the 2022 holiday season approaches, U.S. shipping giants USPS, FedEx, and UPS have unveiled temporary rate adjustments that will impact eCommerce businesses and shippers nationwide. These annual peak season surcharges – reflecting heightened demand, capacity constraints, and operational challenges – will create complex pricing landscapes through January 2023.
USPS Holiday Surcharges: Strategic Exclusions and Timing
The United States Postal Service filed Postal Regulatory Commission (PRC) notice on August 10 detailing seasonal increases for Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, and USPS Retail Ground shipments effective October 2, 2022, through January 22, 2023. International shipments remain exempt.
Notably, USPS Connect Local Delivery, Parcel Return Service, and Lightweight Parcel Select will not face increases – a strategic move to boost adoption of these newer services following a 1% volume decline in 2022. Commercial mailers will see tiered rate increases based on weight thresholds and shipping zones.
FedEx’s Multi-Factor Peak Season Pricing Model
Announced August 5, FedEx’s seasonal surcharges (September 5, 2022-January 15, 2023) employ a complex calculation methodology factoring in:
- Ship date and service level (e.g., Express vs. Ground)
- Residential vs. commercial delivery designation
- Shipper’s weekly volume tier
- Package authorization status
“Due to the variable nature of these surcharges, businesses should consult their FedEx representatives to assess contract-specific impacts,” advises Frank Lynn, Director of Postal Affairs. “Existing discounts and agreements will significantly influence net pricing.”
UPS Extends Existing Surcharge Framework
Unlike its competitors, UPS maintained surcharges instituted in late 2021 throughout 2022. Its holiday pricing model evaluates service level, package dimensions, destination classification, and ship date for both domestic and select international shipments. As with FedEx, negotiated contracts will modulate final costs.
Navigating the 2022-2023 Peak Season
With all three carriers extending surcharges into mid-January 2023 – overlapping with standard annual rate increases – businesses face compounded pricing pressure. Volatile fuel surcharges and delivery area fees will further complicate budgeting. Proactive measures include:
- Modeling surcharge impacts using carrier-specific calculators
- Reviewing carrier contracts for discount applicability
- Exploring USPS incentive products without increases
- Building 15-20% cost buffers for Q4 shipments
“This convergence of temporary and permanent rate hikes demands defensive budgeting,” warns Lynn. “Collaborate early with preferred carriers to optimize service mix and minimize disruptions during the industry’s most volatile shipping window.”
Source: Original Announcement Here