07/05/2017

Every year, shipping prices increase at just about every large delivery service, and the 2017 holiday season will be no exception. United Postal Service announced that beginning this December, there will be surcharges incurred on last minute holiday deliveries.

In an article published June 19th by Matt Linder of Digital Commerce 360, UPS will tack on an additional surcharge ranging from 27-97 cents per package for last minute holiday deliveries. Linder argues that the price increase will allow UPS to “provide the level of service that both shoppers and retailers expect during holiday season”. (Link)

The new holiday pricing is expected to hit small to mid-sized businesses the hardest due to their smaller volumes and inability to leverage a contract to lock in rates unlike their larger competition.

The added charges leave small to mid-sized businesses to battle with the decision of deferring the extra cost to their customers through price increases, potentially jeopardizing client loyalty, or absorbing the additional costs and jeopardizing their bottom line. Either way, UPS’ added cost is a tough pill to swallow and further begs the question of how small businesses are expected to compete with large retailers that have the ability to continue offering low prices and convenient shipping through contracted services.

Linder notes that while no other large courier service has officially announced their intentions to partake in the price increase event, there is speculation of a domino effect among major carriers.

Another article, by Michael Sasso and Mary Schlangenstein posted soon after the UPS announcement, claims that FedEx is now toying with the idea of raising prices during the Holiday season after receiving news of the UPS peak season increase. Though nothing is set in stone, FedEx is considering raising the prices starting Black Friday and continuing through the holidays.

Who will you choose to ship with this holiday season? Consider using a smaller courier service for your holiday deliveries and avoid the major carrier peak season surcharges. AER Logistics is a no contract, no surcharge courier service with a commitment to offering competitive rates on local and nationwide deliveries. Let us handle your last minute deliveries at a fraction of the cost of our large competitors and leave yourself (and your wallet) with peace of mind this holiday season.

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