What is peak season cost?

Peak season surcharges, also known as demand surcharges, refer to temporary surcharges that parcel carriers apply to their base shipping rates to cover increased operating costs during periods of high demand. Most surcharges take the form of flat fees applied per package.



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On a very general level, you can roughly say that peak season is summer—which is June–August in the northern hemisphere and November–February in the southern hemisphere. The Christmas and New Year's holidays are also peak seasons in many parts of the world.

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On a very general level, you can roughly say that peak season is summer—which is June–August in the northern hemisphere and November–February in the southern hemisphere. The Christmas and New Year's holidays are also peak seasons in many parts of the world.

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We find that prices fall on average during seasonal demand peaks for a product, largely due to changes in retail margins. Retail margins for specific goods fall during peak demand periods for that good, even if these periods do not coincide with aggregate demand peaks for the retailer.

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