Peak surcharges are the “new normal” for parcel shippers amidst the COVID-19 Pandemic. Joining the likes of FedEx, UPS, and USPS is West Coast regional delivery company OnTrac. What exactly do you need to know about these charges?
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Like FedEx and UPS, OnTrac’s charges hit hardest for large packages. Unlike UPS and FedEx, OnTrac is not imposing a surcharge based on increased volume – at least, not until Nov. 15. Effective Aug. 24th – Nov. 31, OnTrac will charge an additional $37.50 for large packages, increasing to $50 per package on Nov. 1. The carrier will also charge an additional $5 for packages that require “additional handling”, beginning on the same date. But OnTrac’s most aggressive charge will be a $450 “unauthorized package” charge for oversized items that probably should have been shipped LTL (less-than-truckload). These charges will remain in effect until Jan. 16.
Volume surcharges will be in effect Nov. 15 – Jan. 16 and will apply to customers who exceed their weekly peak volume averages from Apr. 26 – Aug. 1. Customers exceeding their peak volumes by 100% will be charged a per-package fee of $0.50. A $1.50 per package fee will apply to customers who exceed their average by 150% and a $3 per package surcharge will apply to peak averages exceeding 300%. Additionally, Nov. 15 begins a $1 charge for packages shipped in bulk volumes that require USPS for residential last-mile delivery.
While OnTrac’s surcharges are mostly lower than those imposed by FedEx and UPS, we can’t help but think that there’s a better way. Surcharges are costly, especially if you are shackled to volume commitments to get the best rates. But a TMS with a transportation marketplace provides access to the best carrier rates without ever asking for a volume commitment. SwanLeap consistently comes in at 20% percent less than most contracted rates. With residential delivery on the rise due to an increase in Ecommerce activity now is the perfect time to transform the way you ship.