'Twas the season before peak, and all through the house, Not a package was moving, not even a mouse. The surcharges were hung by the carriers with care, In hopes that shippers’ dollars soon would be theirs.
Welcome, dear shippers, to the holiday horror story you didn’t know you were starring in.
Since December 2023, UPS and FedEx have turned the holiday season into a real-life version of The Nightmare Before Christmas. But instead of Jack Skellington, we’ve got surcharges creeping up like unwanted spirits. Hold tight as we take a spooky stroll through the shipping cost graveyard and reveal how you can survive the 2024 hauntings.
The Horrors Unleashed
Like all good horror stories, this one starts with a chilling twist—the dreaded General Rate Increase (GRI).
- December 2023: Just when you thought it was safe to ship, UPS slashed through the calm with a 5.9% GRI, effective December 26, 2023. This increase, like a cursed artifact, affected Ground, Air, and International services. But that was just the beginning. Additional Handling, Large Package, and Over Maximum Limits surcharges rose from their graves, ready to drain your shipping budget faster than a vampire at a blood bank.
- January 2024 - May 2024: Like a recurring nightmare, fuel surcharges rose not once, not twice, but four times by mid-year. These fuel surcharges are like zombies—relentless and always hungry, feeding on the latest spikes in diesel and jet fuel prices.
- August 2024: As if the previous horrors weren’t enough, UPS unveiled their "Demand Surcharges"—a terrifying rebrand of their peak season fees. These are set to haunt you during the busiest times of the year, making every package a potential budget-busting boogeyman.
- December 2023: Not to be outdone in this fright fest, FedEx dropped its own 5.9% GRI, effective January 1, 2024. This sinister increase affected Express, Ground, and Home Delivery services, with Additional Handling and Oversize package surcharges lurking in the shadows, ready to pounce.
- January 2024 - August 2024: FedEx dialed up the horror with five—yes, five—increases to fuel surcharges. These frequent adjustments have all the unpredictability of a jump scare, leaving you clutching your wallet in fear.
- August 2024: FedEx took the horror theme to heart, unleashing peak season surcharges from September 30, 2024, that would make any shipper’s blood run cold. These surcharges are especially menacing for oversized packages and high-volume shippers, ensuring that no one escapes unscathed. And if that wasn't enough, new fees for unauthorized packages and special handling emerged from the depths, like monsters from a murky swamp.
The 2025 GRI Prophecy: What Fresh Horrors Await?
As any horror fan knows, the sequel is usually worse than the original. In this case, the 2025 GRI is shaping up to be a true fright show.
- Expect up to a 7% increase—think of it as the big, bad werewolf of shipping costs. This increase will be driven by rising operational costs, fuel prices, and, of course, the unquenchable thirst of shareholders.
FedEx 2025 GRI Prediction:
- FedEx is likely to follow UPS, like a shadowy figure in a dark alley, with its own 7% increase. As usual, expect even more surcharges, with a particular focus on fuel and special handling fees, because apparently, they’ve decided that your nightmares just weren’t scary enough.
How to Survive the Holiday Horror
Now that we’ve taken a tour of this haunted house of shipping costs, how can you avoid getting spooked? Here are some tips to help you survive:
- Negotiate Like Your Life Depends on It: Just like you wouldn’t venture into a haunted house without a plan, don’t approach your shipping contracts without a good negotiation. Carriers may offer discounts to keep your business—especially if you’re shipping high volumes.
- Pack Smart to Outsmart the Boogeyman: Avoid dimensional weight charges by optimizing your packaging. The less room you give the monsters (or surcharges) to hide, the better.
- Diversify to Avoid the Curse: Spread your shipments across multiple carriers to minimize your exposure to any one carrier’s surcharges. It’s like splitting up in a horror movie—sometimes, it’s the best way to survive.
- Plan for Peak Surcharges Like You’d Prepare for the Zombie Apocalypse: If you know when the surcharges are coming, you can plan your shipments to avoid the worst of them. A little foresight can go a long way in keeping your shipping costs under control.
- Watch Fuel Surcharges Like a Hawk: Keep a close eye on those fuel surcharge announcements. Adjust your shipping strategy as needed—consolidating shipments or choosing alternative methods during peak periods can help you escape the worst of the cost increases.
In the end, while you can’t stop the carriers from playing the villains, you can certainly outsmart them. So, keep your wits about you, your flashlight handy, and remember—shipping doesn’t have to be a horror story if you know how to navigate the haunted house. Happy (and hopefully less scary) shipping!
Supply Chain enthusiast | Partnership Builder | Status quo challenger | Results Driven
2 个月Love this! Thanks for sharing!
Fanatic about e-commerce and post-purchase customer experience!
2 个月1. Yes! I’ve been on the other side of those carrier negotiations, and can say it really is the squeaky wheel that gets the grease. You don’t get what you don’t ask for. 3. Huge! Not only to save on cost but also time in transit. Some carriers are just better than others in certain lanes.
Logistics, Systems & Staffing Executive
3 个月John Conte I always enjoy your thought process… I agree this stuff is scary but by looking at it as more of a Universal Studios ride… You know the kind that feels like you’re flying around and bumping against things but actually you’re just sitting still is the approach that I like the most. Whatever is motivating these guys to make these decisions is more of an illusion if you have a plan in place. I know you’re a great planner and thinker so that makes the ride a lot less scary. Great post ????????