How are FedEx and UPS dealing with rising holiday shipping costs?

Retailers typically face a variety of challenges during the holiday shopping season, and one of the biggest is rising shipping costs.

While the e-commerce and package delivery industries have experienced years of growth, shipping costs have always been a heavy burden for retailers. Especially under the dual influence of demand fluctuations and inflation, the costs of express delivery companies such as FedEx and UPS have continued to rise, putting huge operating pressure on retailers.

Against this background, even if some businesses, such as pet care company Doggie Lawn, have stable orders, they cannot avoid dramatic fluctuations in shipping costs. Although their annual sales have not increased significantly, the additional transportation costs during the holidays have become the largest expense item.

Rising transportation costs, especially during peak seasons, are having a profound impact on retailers’ profitability, a trend that affects not just large retailers but even smaller companies that specialize in specific areas.

FedEx and UPS charging higher fees during peak delivery periods is nothing new, but freight forwarders say the frequency and magnitude of surcharge increases this year is unprecedented.