Volume 38: Peak Season Is Quickly Approaching - Get Your Checklist!

Volume 38 Breakdown:?

1. Last Week's Top Parcel Power Plays
2. KPI of the Week: Top 10 Surcharges
3. FREE Peak Season Prep Checklist

Every week we’re catching you up on the top industry news stories from the previous week. Let’s get into it:

#1 UPS Announces Demand (Peak) Surcharges

UPS has announced their Demand Surcharges ahead of the 2024 holiday season.

There are two notable changes from last year.

1. Everyone is subject to Demand Surcharges. In 2023, Demand Surcharges (other than weight/size based fees) only applied to packages that went over 105% or more of a shippers’ average “baseline” volumes, and only shippers who averaged over 20,000 weekly packages were eligible. This year, ALL shippers and shipments will receive a base Demand Surcharge. Higher-volume shippers are still subject to higher rates for over-baseline shipments.
2. Weight/size-based Demand Surcharges have three separate pricing periods. Both the base and weight/size-based Demand Surcharge prices will vary across three separate date ranges, with the most expensive charges coming between November 24 and December 28. Last year, weight/size based surcharges were a flat fee throughout peak season.

Demand Surcharge Details from UPS

#2 Rate Reseller Caught Selling Counterfeit Shipping Labels

Florida-based rate reseller NullShip Solutions has been discovered selling counterfeit UPS and USPS shipping labels to partners. One client, 3PL Singh Logistics, lost over $24,000 in goods shipped with the service.?

FreightWaves investigated the claims by purchasing a label through NullShip’s platform. A U.S. Postal Inspector then confirmed it was counterfeit. The label lacked information on the product’s weight and dimensions, and the tracking number did not register in the USPS’ system - clear signs that a label is illegitimate.

NullShip claims to have partnerships with a number of companies in the eCommerce and fulfillment industries, many of whom have denied any connection to the company.

Article from Brinley Hineman, FreightWaves

#3 Global IT Outage Delays Air Shipments

Technology platforms worldwide were hindered by a software outage. Many airlines, including cargo carriers, were impacted. FedEx and UPS reported activating contingency plans to limit the impacts, but warned of delays for packages scheduled for a delivery on 7/19.

Article from Eric Kulisch, FreightWaves

What is Top 10 Surcharges?

Top 10 Surcharges should be tracked in 2 ways, by count and spend. Top 10 Surcharges by count refers to the 10 surcharges the carriers have charged you the most(in a specified time period). Top 10 surcharges by spend refers to the 10 surcharges that have cost you the most (in a specified period of time).?

Why is tracking Top 10 Surcharges important?

It is important to keep track of your top 10 surcharges so that you can understand what charges you are getting hit with the most and what charges cost you the most. You can then evaluate which of those surcharges are avoidable and which ones you have to accept based on the product you’re shipping or who you’re shipping to.?

FREE Peak Season Prep Checklist

Peak Season is quickly approaching! Are you ready for your best one yet??

Every year brings new challenges for parcel shippers, and over the last few years, the chaos has been unreal. But don’t let the pressure get to you; you can pull multiple levers today to create a secured, revenue-bursting season.

Grab your free Peak Season Checklist and learn how to:?

• Identify quick wins in your operations
• Put your performance first and exceed customer expectations
• Modernize your distribution network
• Become a subject matter expert on your data
• Turbocharge your carrier contracts to work for you

Win big this peak season–and beyond: Download the Checklist !