FedEx, UPS peak season surcharges could drive shippers to competitors
Shippers generally feel surcharges are fair when projected demand abruptly exceeds capacity because carriers do a lot of seasonal hiring and training, lease extra aircraft and other equipment, and take on other expenditures to ensure continuity of operations. In 2013, a spike in demand combined with blizzards severely impacted parcel carriers’ on-time performance, upsetting retailers and their customers, and prompting the move to demand surcharges the following year.“[At] the height of the Covid time period ...