Dive Brief:
- FedEx will levy demand surcharges on various import shipments into the U.S. — including those originating from Canada, Europe, Latin America and the Caribbean — starting Monday until further notice, the carrier announced earlier this month.
- The company will also increase the price of existing demand surcharges on U.S.-bound shipments from various countries in Asia, including China, South Korea and Japan. Fees on U.S. export shipments into Canada, Europe, Australia, New Zealand, Latin America and the Caribbean will climb, too.
- "During times of elevated volumes, high demand for capacity, and increased operating costs across our network, FedEx will implement Demand surcharges," FedEx said in an update on its website. "Demand surcharges are determined for each market based on regular assessments of shipment volume and network capacity."
New export, import fees on FedEx international services
| Origin | Destination | Per-pound demand surcharge effective Sept. 21 |
|---|---|---|
| Canada | U.S. | $0.14 |
| Latin America and the Caribbean | U.S. | $0.12 |
| Europe, Israel | U.S. | $0.25 |
| China, Hong Kong and Macau | U.S. | $0.54 or $0.91* |
| Australia, Cambodia, Fiji, Guam, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand | U.S. | $0.54 or $0.73* |
| India | U.S. | $0.89 |
| Sub-Saharan Africa | U.S. | $0.60 |
| Middle East, India subcontinent and Africa region (excluding India and Sub-Saharan Africa) | U.S. | $0.70 |
| U.S. | Canada, Latin America and the Caribbean, Europe, Australia and New Zealand | $0.30 |
*The lower rates apply to various economy services, while the higher rates apply to several express services.
Dive Insight:
FedEx's new per-pound charges present another cost pressure for shippers grappling with rising tariffs and escalating fees during the coming peak holiday shipping season.
The logistics giant often levies demand surcharges when volume climbs. Last year, FedEx instituted a temporary fee for parcel shipments from China, Hong Kong and the Philippines entering the U.S. as importers rushed to move inventory ahead of new tariffs and changes to the now-defunct de minimis exemption.
FedEx has recently seen increased demand for its cross-border shipping services, with average daily volume for international export packages climbing 5% year over year in the quarter that ended May 31.
Affected shippers of FedEx's latest demand surcharges should update their origin-and-service mappings, model exposure by chargeable weight and confirm country-level changes with FedEx, according to an analysis from ShipScience. Customers importing from China, Hong Kong, Macau or the group featuring Japan, South Korea and others will face the largest immediate cost increases, it added.
For example, the demand fee on a 40-pound priority shipment from China would rise $22.40 before any fuel surcharges, per ShipScience, which noted "exporters to Canada, Latin America and the Caribbean, Europe, Australia and New Zealand will see a more uniform 50% increase."
