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?
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.