Summer may not be quite over but a new consumer alert could mean it’s time to get a head start on holiday shopping plans.
Several mail carriers across the country have announced new price increases which will roll out in the coming months.
FedEx, UPS and the United States Postal Service have all announced temporary peak surcharges with fees coming later in the fall.
FedEx announced a $1.50 per piece price hike for Ground Economy packages. The USPS announced a .25 cent to $5.00 increase depending on the type of product and its weight. Both surcharges will take effect between October and January 2022.
The new price increases come on the heels of a nearly year and a half of living through the pandemic, which left mail carriers to deal with labor shortages and increased demand due to a rise in online shopping.
Hitha Herzog, chief research officer for H Squared Research, told “Good Morning America” that the issue facing retailers is getting products to stores.
“The real challenge comes from how the products are getting to the stores,” she said. “While the CEO of Target can say they have $2 billion worth of inventory coming to the stores, no one is addressing how that product is getting to the stores. There aren’t enough truck drivers — there’s not enough cargo trains … so it becomes a logistics issue.”
New delivery surcharges will add pressure to retailers across the country as they decide whether to absorb the price hikes or pass them on to consumers.
The best way to be sure to beat the shipping trouble this holiday season is to buy early and plan ahead, Herzog said.
“I’m telling anyone who is going out and shopping to go out there as soon as they possibly can,” Herzog suggested. “As you get closer to the holiday season, you’re really taking your chances of what’s going to be on those aisles.”
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