We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Pitney Bowes hikes prices for peak season deliveries and returns

Pitney Bowes hikes prices for peak season deliveries and returns

Surcharge could filter down to consumers as retailers wrestle with similar surcharges from FedEx, UPS, USPS.

fragile box generic
September 4, 2020
Supply Chain Quarterly Staff
No Comments

Shipping technology specialist Pitney Bowes Inc. has announced price hikes for its domestic and cross-border delivery and returns services for the peak holiday shipping season, joining UPS Inc., FedEx Corp., and the U.S. Postal Service in a move that will increase the pressure on shippers to pass those higher charges along to consumers.

A spike in e-commerce driven by work-from-home policies during the pandemic is driving the change, the Stamford, Connecticut-based firm said. While that expansion of e-commerce has been fruitful for online commerce, it has also created challenges as shipping costs are rising ahead of what is expected to be the largest online holiday shopping season in history, Pitney Bowes said.

“Our clients rely on Pitney Bowes to help anticipate and manage their logistics costs. We don’t take that responsibility lightly and the challenges of the pandemic have not altered our approach to simple and transparent pricing,” Gregg Zegras, executive vice president and president of global e-commerce at Pitney Bowes, said in a release. “We have worked directly with our clients to review and revise volume projections and examine the realities of our market. Based on that analysis we are introducing a simple, reasonable, and temporary peak rate adjustment not to exceed $1.50 per parcel across all of our e-commerce delivery and returns services.”

According to Pitney Bowes, its flat-rate hike will be easier to understand than recent peak season surcharges announced by other major carriers, which “puts e-commerce merchants and shippers in the untenable position of not being able to forecast growing costs during this most critical time of year.”

However, the industry analyst firm Spend Management Experts said regardless of how clear or murky the charges may be, many retailers will be forced to pass some of them down to consumers. That is especially true because the majority of package volumes have dramatically shifted from bulk retail shipments to more expensive residential parcels this year because of Covid-19, and they continue to remain elevated, according to a blog post by John Haber, CEO of Spend Management Experts.

In response, retailers will have to adapt quickly or face bankruptcy. According to Haber, 2020 will likely see a record number of bankruptcies as the retail industry continues to adapt to a changed environment that favors e-commerce. “The companies that are going to be hurt by these surcharges are the companies that can least afford it at this point, and that’s retailers,” Haber said.

E-Commerce Logistics
KEYWORDS Pitney Bowes Spend Management Experts
  • Related Articles

    Digital networks help retailers “pivot” post Covid-19

    Pitney Bowes names Gatik for autonomous truck network in Dallas

    Pitney Bowes boosts investment in robotic picking vendor

Recent Articles by Supply Chain Quarterly Staff

Intermodal sector weathered a “challenging” year in 2022, IANA says

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing