2024 holiday shipping surcharges and fees: Carrier-by-carrier breakdown

As your ecommerce brand gears up for the holiday rush, managing peak season costs is essential, especially when it comes to shipping surcharges. These added fees, imposed by parcel carriers during the busiest times of the year, can surprise business owners and impact margins. 

At Saltbox, we understand the unique challenges of small to midsize ecommerce brands, and we’re here to offer insights on how to plan around these costs while keeping fulfillment efficient and stress-free. Read on to learn about holiday shipping surcharges, the fees you can expect from top parcel carriers when self-shipping, and how Saltbox’s shipping platform, Parsel, can help you avoid these costly expenses altogether.

Understanding holiday shipping surcharges: What are they?

During peak shipping seasons (typically October through January), parcel carriers like FedEx, UPS, and USPS apply surcharges and other fees to manage demand and offset increased operational costs. These fees vary based on package size, weight, and/or destination. Here’s a quick breakdown of some common surcharge types:

• Additional handling and oversize surcharges: For packages that exceed certain size or weight limits, carriers apply extra fees.
• Residential delivery surcharges: Delivering to residences often incurs additional costs due to increased traffic and handling time.
• Fuel surcharges: Changes in fuel prices lead to fluctuating surcharges, which are especially impactful for longer-distance or heavier shipments.

For ecommerce brands operating on tight margins, these costs can add up quickly. But with a proactive approach, Saltbox members can mitigate these expenses.

How to avoid peak season surcharges with Saltbox

By choosing flexible warehousing with Saltbox, you’re already taking steps to streamline logistics and maintain control over fulfillment costs. Here’s how you can leverage our logistics services and resources to ship products with ease:

• Optimize package sizes: With in-suite pick and pack services, Saltbox members can ensure their orders are packaged efficiently, reducing the likelihood of oversized package fees. Our team can assist in configuring package dimensions to avoid unnecessary charges.
• Leverage regional shipping options: Shipping with regional carriers offers significant advantages—think lower rates, faster delivery times, and no peak surcharges. With Parsel, Saltbox members can tap into these benefits seamlessly. Parsel’s intuitive app calculates shipping costs and automates shipping workflows for you, saving you hours and time on every shipment. Take the hassle out of holiday shipping and explore all the ways Parsel can support your business here.

A breakdown of 2024  holiday shipping surcharges by carrier

Holiday shipping surcharges are an essential consideration from late September through mid-January, as carriers adjust their pricing for peak demand. While they may seem miniscule at first glance, they can really add up fast, especially when hidden fees are involved. To help you plan ahead, we’ve broken down the surcharges from the three major carriers:

FedEx holiday shipping surcharges

How to calculate: Use FedEx’s shipping rates calculator to get an estimate of your shipping costs during peak season.

1. FedEx demand surcharges

Applicable services: FedEx Ground residential, FedEx Home Delivery residential

2. FedEx oversize packages and additional service fees

Applicable services: See the below chart to understand services impacted by each surcharge type.

UPS holiday shipping surcharges

How to calculate: Use UPS’s shipping rate calculator to get an estimate of your shipping costs during peak season.

1. UPS demand surcharges

Applicable services: See the below chart to understand services impacted by each surcharge type.

2. UPS additional handling, large packages, and over maximum fees

Applicable services:  U.S. domestic, U.S. import, and U.S. export shipments

USPS holiday shipping surcharges

How to calculate: Use USPS’s Retail Postage Price Calculator to get an estimate of your shipping costs during peak season.

1. USPS demand surcharges

Dates effective: Midnight Central on Oct. 6 through midnight Central on Jan. 19, 2025.

Proactive planning tips for a surcharge-savvy peak season

Preparation is the key to minimizing shipping costs during the holiday season. Here are some steps Saltbox recommends to stay ahead:

• Audit your shipping costs: Use historical data from previous peak seasons to identify common surcharge triggers. Saltbox members can also leverage our logistics expertise to predict which surcharges may apply based on their specific shipping patterns.
• Communicate with customers: Transparency goes a long way. Be upfront with customers about potential shipping delays or fees during peak season. By adjusting your checkout options to reflect real-time carrier rates, you can pass on some of these costs without risking surprise expenses.

For more expert shipping tips, check out our blog, Mastering holiday shipping: Proven strategies for peak season success.

Count on Saltbox’s peak season support

The holiday rush can be overwhelming, but Saltbox’s dedicated resources are here to make it manageable. From our peak season preparation hub to on-demand in-suite pick and pack support, Saltbox is designed to give you the flexibility and reliability you need during this critical time of year. And with experts on-site, we’re always ready to help you tackle any peak season logistics challenge that comes your way.

Ready to take control of your peak season?

Saltbox is here to ensure your ecommerce business thrives—even in the busiest seasons. If you’re not yet a Saltbox member and want to see how flexible warehousing can help you manage costs and grow, book a tour at one of our 12 locations across the U.S. or reach out to our team today. Let’s make this holiday season your most successful one yet!