Dive Brief:
- FedEx has announced 2023 peak season surcharges and fees for shippers that are higher than last year’s additional charges.
- The added fees, active between October and January, apply to packages that are bulky, large or require additional handling. FedEx will also add surcharges for FedEx Ground Economy services and for high-volume customers that ship more during peak season.
- FedEx has also rebranded its peak surcharges as “demand” surcharges. The logistics giant said it will implement these fees in times of high shipping demand that strains its network.
FedEx 2023 peak season surcharges
| Surcharge name | Services affected | Surcharge per package, effective date |
|---|---|---|
| Demand — Additional Handling Surcharge | U.S. Express Package Services, U.S. Ground Services, International Ground Service | $6.95 (Oct. 2 - Jan. 14) |
| Demand — Oversize Charge | U.S. Express Package Services, U.S. Ground Services, International Ground Service | $73 (Oct. 2 - Jan. 14) |
| Demand — Ground Unauthorized Package Charge | U.S. Ground Services, International Ground Service | $410 (Oct. 2 - Jan. 14) |
| Demand Surcharge | FedEx Ground Economy Package Services | $1.60 (Oct. 30 - Nov. 26, Dec. 11 - Jan. 14) $2.60 (Nov. 27 - Dec. 10) |
| Demand — Residential Delivery Charge | FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate packages) | Based on shipper’s “peaking factor” (Oct. 30 - Jan. 14) |
SOURCE: FedEx
Dive Insight:
The holidays are consistently a time of high demand for FedEx and other carriers' networks, with the company saying the surcharges and fees allow it to keep its service levels strong. UPS is expected to announce another round of peak surcharges this year, and Amazon is again upping its fulfillment services fees for the upcoming holiday season.
"As FedEx prepares for high demand during the holiday shipping season, we are adjusting our networks to best deliver for our customers," the company said. "We again anticipate the surge in residential volume to carry over into the new year."
FedEx is again implementing surcharges that target large shippers' volume spikes during the holidays to counter the strain on its network. Starting Oct. 9, enterprise-level customers shipping more than 20,000 residential and FedEx Ground Economy packages will be subject to the company's "Demand — Residential Delivery Charge."
This charge can range from $1.35 to $6.35 per FedEx Ground package, and $2.40 to $7.40 for FedEx Express package. The amount depends on how much more the customer is shipping compared to their weekly average residential and FedEx Ground Economy volume from June 5 to July 2. FedEx calls that increase a shipper's "peaking factor."
FedEx will calculate the peaking factor each week from Oct. 9-15 to Dec. 18-24, with a week's charge being applied three weeks later. For example, a customer shipping 30% more volume the week starting Nov. 13 than they did from June 5 to July 2 will see an added $1.85 charge for each applicable FedEx Ground package shipped the week starting Dec. 4.
