Dive Brief:
- FedEx will not apply residential surcharges this holiday season "except for shipments that are oversized, unauthorized or necessitate additional handling," the company said in a news release.
- This is the second consecutive year FedEx has decided against residential surcharges. The carrier said waiving surcharges helps support small and medium-sized businesses.
- For oversized shipments, surcharges will be in effect November 19 through December 24, ranging from $3.20 to $150 per package.
| Type of surcharge | Surcharge amount per package |
|---|---|
| Additional handling | $3.20 |
| Oversized | $27.50 |
| Unauthorized package | $150.00 |
Source: FedEx
Dive Insight:
FedEx's move to avoid surcharges during the busy holiday season comes in stark contrast to UPS, which has published peak surcharges for several weeks in November and December 2018.
"A Peak Surcharge will apply to each package addressed or delivered to a location that is a home, including a business operating out of a home," UPS said in its surcharge guidelines.
For UPS Ground services, peak surcharges are $0.28, a one-cent increase over last year's holiday surcharge. Shipments that are oversized or require additional handling also face additional charges at similar rates to FedEx.
Holiday sales in 2017 amounted to nearly $692 billion, and $138 billion of that came through online sales, according to the National Retail Federation. With e-commerce sales expected to remain high this peak season, $0.28 surcharges per package can add up to significant costs for shippers that must either be absorbed into their costs or passed on to consumers.
Shippers looking for the best deal on deliveries, especially small businesses, may turn to FedEx to avoid incremental fees.
