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USPS Announces Peak Season Surcharges

Following suit with other major carriers like FedEx and UPS, the United States Postal Service (USPS) announced peak season surcharges for 2021. According to the announcements:

“The planned peak-season pricing, which was approved by the Governors of the Postal Service on Aug. 5, would affect prices on commercial and retail domestic competitive parcels – Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12:00 a.m., Central Time, on Oct. 3, 2021, and remain in place until 12:00 a.m., Central Time, Dec. 26, 2021.”

Though less common from the USPS, the peak season surcharge isn’t unprecedented; they announced a similar surcharge for commercial customers ahead of a 2020 peak season when parcel volumes and capacity shortages were both anticipated and later came to fruition. The 2021 surcharge extends beyond commercial shippers to individuals shipping even single packages.

USPS peak season surcharges

Preparing for Peak Season

Capacity issues appear poised to rear their ugly head during the upcoming holiday season, meaning retailers should consider alternative fulfillment options such as buy-online-pick-up-in-store (BOPIS), ship-from-store, and incorporating more local last-mile and regional carrier services into the mix. By providing an omnichannel sales and fulfillment approach, retailers can ensure they’re offering customers the greatest flexibility and pricing possible during the critical peak season.

Retailers should also employ a multi-carrier shipping strategy to increase stability and quickly react to carrier surcharges and rate increases to control costs. Logistyx offers an extensive carrier network that includes dozens of regional carriers – including LaserShip, OnTrac and Speedee Delivery – making it easier and faster to add and maintain carriers’ rates and services in a shipper’s carrier network.

With a cloud multi-carrier shipping system, businesses can maintain the levels of service customers are accustomed to despite surging demand, carrier capacity crunches and increased shipping rates by automatically comparing carriers’ rates and service levels to select the optimal carrier for each shipment.

Contact us today to learn more about how a cloud-based multi-carrier shipping system can help your business optimize parcel shipping ahead of peak season to help control costs.