Major parcel carriers have implemented peak season surcharges for over a decade, but with muted demand growth forecasted, critics question the rationale behind the fees, warning of a potential exodus of e-commerce shippers to other delivery companies.
ShipMatrix research indicates a low double-digit increase in average daily volume for the upcoming holiday season, a significant drop from previous years, with an estimated 2.3 billion packages to be delivered in the US during the peak period.
Carriers like UPS have begun applying demand surcharges, with fees increasing for packages that require additional handling. FedEx, USPS, Amazon, and regional carriers have also announced surcharges, leading to concerns over the impact on businesses and consumer costs.
ShipMatrix President Satish Jindel believes that implementing surcharges in a softer market is shortsighted, potentially diverting volumes to alternative delivery networks like Uber and DoorDash, which now offer last-mile services.
FedEx and UPS have seen a decline in parcel market share to large retailers and independent carriers due to the elimination of commercial discounts and annual rate increases, pushing customers to seek alternative options for their shipping needs.
The first half of 2025 saw a 6.1% increase in Amazon’s parcel volumes, while FedEx experienced a 5% increase. UPS and USPS, however, saw a decrease in volumes, losing market share to other carriers and large retailers like Walmart.
Amazon’s recent $4 billion expansion of Same-Day and Next-Day service in small communities has contributed to its gain in parcel volumes, while Walmart and Target have seen significant growth in store-fulfilled delivery sales.
Despite having twice as much capacity as projected demand, the Postal Service is imposing surcharges during the peak season, prompting suggestions from experts to lower peak surcharges in 2026 or to apply them only during specific weeks like Cyber Week and Christmas. 1. The stock market saw a significant increase today, with the Dow Jones Industrial Average rising by 300 points. This marks the third consecutive day of gains for the market, as investors remain optimistic about the economic recovery.
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Read more at Yahoo Finance: FedEx, UPS peak season surcharges could drive shippers to competitors