January, the Month of Rate Hikes – Are You Ready?

January 15, 2021


The latest figures from Salesforce indicate that the 2020 holiday season experienced a 50% growth in digital sales. As last-mile delivery providers face increasing volumes thanks to the growth in e-commerce, shipping costs are increasing.

A friendly reminder to all shippers that during the month of January, a number of rate and surcharge increases take effect. To help you out, we’ve compiled a list of some the changes taking place this month:

 

  1. FedEx

2021 rates went into effect on Jan. 4. However, 2020 holiday peak season surcharges for SmartPost, Residential, Additional Handling and Oversize remain in effect until Jan. 17. Beginning Jan. 18 and until further notice, peak surcharges will be implemented on Oversize, Additional Handling and SmartPost.

  1. UPS

2021 rates went into effect on Dec. 27. However, 2020 holiday peak season surcharges for SurePost, Residential, Additional Handling, Large Package and OverMax remain in effect until Jan. 16. Beginning Jan. 17 and until further notice, peak surcharges will be implemented on Ground Residential, SurePost, Additional Handling and Large Packages.

  1. USPS

2021 rates will take effect on Jan. 24. This will also include the postal operator’s $100 fee for oversized packages.

  1. Pitney Bowes

2021 rate increases for ecommerce delivery services and for returns services went into effect on Jan. 3.

  1. OnTrac

2021 rate increases went into effect on Dec. 27. Some holiday peak season surcharges including Large Package and Additional Handling end on Jan. 16. On Jan. 17, peak season surcharges will be implemented until further notice for Large Package and Additional Handling.

  1. LaserShip

2021 assessorial fees including Additional Handling, Residential, OverMax, Delivery Area Surcharge and Address Correction are in effect beginning Jan. 1.

 

For more information, check out some of our previous blog posts:

2021 Parcel Rate Comparisons – FedEx, UPS and USPS

USPS 2021 Rate Increases Likely to Have Big Impact

UPS and FedEx Continue Peak Season Surcharges into 2021

And of course, we’re to help answer your questions. To learn more about our services, contact us at solutions@spendmgmt.com.

 


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered.

Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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January, the Month of Rate Hikes – Are You Ready?

January 15, 2021


The latest figures from Salesforce indicate that the 2020 holiday season experienced a 50% growth in digital sales. As last-mile delivery providers face increasing volumes thanks to the growth in e-commerce, shipping costs are increasing. A friendly reminder to all shippers that during the month of January, a number of rate and surcharge increases take effect. To help you out, we’ve compiled a list of some the changes taking place this month:  

  1. FedEx

2021 rates went into effect on Jan. 4. However, 2020 holiday peak season surcharges for SmartPost, Residential, Additional Handling and Oversize remain in effect until Jan. 17. Beginning Jan. 18 and until further notice, peak surcharges will be implemented on Oversize, Additional Handling and SmartPost.

  1. UPS

2021 rates went into effect on Dec. 27. However, 2020 holiday peak season surcharges for SurePost, Residential, Additional Handling, Large Package and OverMax remain in effect until Jan. 16. Beginning Jan. 17 and until further notice, peak surcharges will be implemented on Ground Residential, SurePost, Additional Handling and Large Packages.

  1. USPS

2021 rates will take effect on Jan. 24. This will also include the postal operator’s $100 fee for oversized packages.

  1. Pitney Bowes

2021 rate increases for ecommerce delivery services and for returns services went into effect on Jan. 3.

  1. OnTrac

2021 rate increases went into effect on Dec. 27. Some holiday peak season surcharges including Large Package and Additional Handling end on Jan. 16. On Jan. 17, peak season surcharges will be implemented until further notice for Large Package and Additional Handling.

  1. LaserShip

2021 assessorial fees including Additional Handling, Residential, OverMax, Delivery Area Surcharge and Address Correction are in effect beginning Jan. 1.

 
For more information, check out some of our previous blog posts:

2021 Parcel Rate Comparisons – FedEx, UPS and USPS

USPS 2021 Rate Increases Likely to Have Big Impact

UPS and FedEx Continue Peak Season Surcharges into 2021

And of course, we’re to help answer your questions. To learn more about our services, contact us at solutions@spendmgmt.com.  
ABOUT SPEND MANAGEMENT EXPERTS Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered. Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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