As we approach the 2024 holiday shipping season, fashion and lifestyle brands should brace for what promises to be the most condensed peak season since 2019. With Thanksgiving falling on November 28, the window for order deliveries between Black Friday and Christmas is shorter, increasing the pressure on logistics and shipping operations. To ensure your brand is fully prepared, the Bergen Logistics team has outlined key updates and strategies to help you navigate the 2024 busy period efficiently.
2024 Carrier Demand Surcharges
Parcel carriers implement peak season surcharges, also known as demand surcharges, during high-volume shipping months from October to January. These surcharges help carriers cover fluctuating operational costs during the holiday season. In 2024, carriers like UPS, FedEx, USPS, and DHL have announced significant changes to their peak surcharges. Here’s a brief breakdown:
- UPS: Starting September 29, 2024, UPS will implement surcharges on bulky packages, with additional charges on Ground Residential, Air, and SurePost packages from October 27 to January 18, 2025.
- FedEx: Surcharges begin on September 30, 2024, with fee hikes for packages requiring additional handling. From October 28 to January 19, 2025, residential demand surcharges will apply to various services.
- USPS: Temporary rate increases of 4.9% to 6.4% are scheduled from October 6 to January 19, 2025.
- DHL: Demand surcharges will be applied from September 15, 2024, to January 31, 2025, depending on shipment origin and destination.
Understanding these surcharges will help your business to avoid unexpected costs and manage your logistics budget effectively during the peak season.
Sifted Parcel Data Analytics and Dashboards
To assist you in tracking and managing peak season surcharges, Bergen Logistics has partnered with Sifted to provide a client-facing dashboard. This tool offers insights into parcel data, helping you optimize expenditures and monitor the impact of peak season surcharges from carriers like UPS and FedEx. We encourage you to review this dashboard to adjust your shipping strategy and ensure proper budgeting.
Strategies & Planning for Peak/Demand Surcharges
Planning ahead can significantly reduce the financial burden of peak season surcharges. Here are a few key strategies to help your fashion brand minimize shipping costs:
- Launch Early Shopping Campaigns: Stimulate pre-holiday buying to spread out shipping volume.
- Extend Service Time: Give your shipping schedules more flexibility by avoiding peak shipping periods.
- Address Corrections: Focus on reducing controllable costs, such as address correction fees and third-party billing.
- Optimize Packaging: Reduce package size to avoid additional handling and oversized package surcharges.
- Stock Up on Supplies: Secure essential shipping materials early to avoid scarcity and price inflation.
Preparing for Success
Fashion and lifestyle brands face unique challenges during peak season. By staying informed about carrier surcharges, utilizing tools like the Sifted dashboard, and optimizing your 3PL shipping strategies, you can effectively reduce costs while ensuring timely and reliable deliveries for your customers.
If you’re a Bergen Logistics client but not yet part of our Preferred Shippers Program, we encourage you to reach out to your account manager. Learn how we can help your business improve delivery times and enhance performance through better data analysis, management, and planning.
If you’re a prospective client, don’t hesitate to schedule a consultation with our business development team. Let’s grow together!