Peak Surcharge

Peak surcharges are extra fees carriers add during busy shipping periods—typically October through January for the holiday season. These temporary charges help carriers manage overwhelming demand and offset costs of hiring seasonal workers and adding capacity.

When Peak Surcharges Apply

Holiday Peak Season:

• Typically late October through mid-January
• Heaviest surcharges: Black Friday through Christmas
• May extend through returns season (January)

Other Peak Periods:

• Amazon Prime Day (for some carriers)
• Back-to-school season
• Major promotional events

Typical Peak Surcharge Rates

Note: Rates vary year to year and can change with little notice.

Types of Peak Surcharges

Residential Peak

Higher fees for home deliveries due to:

• More scattered delivery routes
• Higher failed delivery rates
• Increased package theft concerns

Large Package Peak

Significantly higher fees for oversized items:

• Take up disproportionate truck space
• Require special handling
• Can be $50+ per package during peak

Additional Handling Peak

Extra fees for packages requiring special handling:

• Non-standard packaging
• Heavy items
• Fragile goods

Impact on E-commerce

For online sellers, peak surcharges can devastate margins:

Example:

• 10,000 packages in December
• Average $3 peak surcharge
• $30,000 in unexpected costs

Strategies to Minimize Peak Costs

1. Ship early - Encourage customers to order before peak pricing
2. Use USPS - Often has minimal or no peak surcharges
3. Regional carriers - May have lower peak fees
4. Right-size packages - Avoid large package surcharges
5. Negotiate caps - High-volume shippers can negotiate limits
6. Build into pricing - Factor Q4 surcharges into product prices

Planning for Peak Season

Before Peak:

• Review carrier peak surcharge announcements
• Update shipping cost calculations
• Adjust free shipping thresholds
• Consider raising prices or shipping fees
• Stock up on smaller packaging

During Peak:

• Monitor actual surcharge impact
• Communicate delays to customers
• Have backup carrier options
• Consider shipping cutoff dates