OnTrac Increases Pricing for Peak Season 2023

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Oct 10, 2023

OnTrac Increases Pricing for Peak Season 2023

OnTrac has added their name to the list of carriers adding peak season demand surcharges that will begin in October and remain in effect into the early part of the new year.

Surcharges will range on a sliding scale from $1.35 to $6.40, depending on how a brand’s weekly volume compares to their baseline volume from June 2023. The more successful the holiday season, the bigger the bite that OnTrac will take from a brand’s margins. The worst part is brands won’t know what their shipping costs are until after the fact when they see the invoice. 

OnTrac’s peak surcharge is comparable to ground service surcharges announced previously by UPS ($1.35-$6.40) and FedEx ($1.35-$6.35).

Surcharges are a response to the high cost of scaling for legacy carriers. The combination of a large FTE workforce and an asset-heavy business model creates a high fixed-cost base. Those costs balloon when peak season workloads result in soaring overtime payouts and the need to add costly temporary vehicle capacity. Carriers, in turn, pass those costs on to their customers.

At AxleHire, we do things differently. Our business model is asset-light and technology-driven. We have a ready-and-waiting pool of gig drivers in major metro areas that we can tap into at a moment’s notice, along with a growing network of partner providers that allows us to flex up and down on demand quickly. Scaling for peaks and valleys is at the core of our model, and that flexibility is the reason we can adjust to peak season demand without passing extra costs on to our customers. 

It’s not too late to leverage AxleHire’s next-day urban delivery capabilities this holiday season, but the clock is ticking. To find out how we can help provide the cost certainty and personalized service that is not available from national providers, connect with one of our logistics experts.