Peak Surcharges: Prevent Shortage Deductions
- The HRG Team
- Oct 16
- 2 min read
Peak season doesn’t just raise parcel costs—it raises the odds of shortage deductions, OTIF chargebacks, and messy post-audit “proof of delivery” debates.
The window is set: UPS peak (demand) surcharges will run from September 28, 2025, to January 17, 2026. Expect higher fees on large packages and volume-based surcharges that ratchet with your weekly average. Over-Maximum-Limits fees alone can run into the hundreds per piece.
And that’s on top of the 2025 5.9% average rate increases at both UPS and FedEx. Translation: every mis-pick, missed appointment, or split shipment costs more—and invites more debits.
Why peak drives “phantom shortages”
Split shipments to hit delivery windows fragment ASNs; DCs receive partials and book the rest as missing.
Labeling/cartonization changes to dodge surcharges break compliance rules (or confuse scanners).
Appointment churn as carriers juggle peak volume → late check-ins → OTIF chargebacks.
Exception handling gaps where reweighs/over-max fees alter routing and your PO clocks out.
A quick fictional scenario (clearly illustrative)
A natural foods brand bumps carton dimensions slightly to avoid Over-Max fees. The new master pack scans fine at their 3PL—but the retailer’s DC expects the old dimensions and flags “qty mismatch.” A shortage deduction lands. The supplier disputes with carrier scans, 3PL photos, and appointment logs; they also attach the UPS notice showing peak surcharge thresholds (context for why the packaging changed). The debit is reversed. This is not a real case, just an example of how small tweaks cascade in peak.
The Peak-Proof Checklist (steal this)
Lock the calendar: add a 3–5 day buffer to DC appointments from 10/1 to 1/15; renegotiate due-by dates on promo POs.
Freeze pack data: If you must change dimensions/weight, update the item setup and ASN rules with every buyer before the first shipment.
Photo evidence: require pallet & carton photos at ship time (labels visible), store with shipment ID.
Scan continuity: Ensure carrier scan chains (pickup → linehaul → delivery) are exported to your dispute folder nightly.
ASN discipline: one shipment, one ASN. Partial releases = separate ASNs.
Proof library: BOLs, PRO/Tracking, DC appointment confirmations, carrier exceptions, 3PL load sheets—templated, searchable.
Reconcile weekly: match carrier delivery events to retailer receipts; dispute any “missing” within the portal SLA.
Promo safeguards: ensure promo calendars align with carrier capacity; avoid “Friday land” deadlines that push to Monday.
Escalation tree: pre-assign who calls the carrier, who rebooks the DC, and who files the dispute—no Slack scavenger hunts at 4:55 p.m.
Disputing peak-season deductions
Lead with delivery scans + appointment logs to show on-time tender and DC receipt.
Add carton photos to kill “qty mismatch” claims fast.
If you change packaging to avoid surcharges, document the reason and provide the buyer with pre-notice. Context helps.
Refile on cadence; many portals reset review timelines with each submission.
Peak season magnifies small misses. Get your evidence in order now, and shortage deductions become the exception—not the rule.
If you want a second opinion on shortage disputes, HRG’s team can help.
