Your FedEx shipments will incur fees in addition to the standard list rate. Some of these surcharges come as a surprise to shippers and are complicated to understand. That’s why you will find five common FedEx surcharges defined in more detail below.
Read more: 2018 FedEx fees for value-added services
Additional handling surcharges for FedEx express package and ground services
For U.S. express and ground services, this surcharge applies per piece even if multiple pieces are bundled in a shipment.
Dimensions and weight
The additional handling surcharge was first announced in 2016. Over the years, the surcharge has evolved. Prior to January 22, 2018, a surcharge applied to any package that measured greater than 60 inches along its longest side for FedEx Express or measures greater than 48 inches along its longest side for FedEx Ground. Now, an additional handling surcharge applies to any package that has dimensions measuring greater than 48 inches along its longest side and measures greater than 30 inches along its second-longest side. There must be an actual weight greater than 70 pounds.
An additional handling surcharge applies to any package that is:
- Not fully encased in an outer shipping container.
- Is encased in an outer shipping container not made of corrugated fiberboard (cardboard) materials, including but not limited to metal, wood, canvas, leather, hard plastic, soft plastic, or Styrofoam.
- Is encased in an outer shipping container covered in shrink wrap or stretch wrap.
- Is encased in a soft-sided pack that exceeds 18 inches along its longest side or 13 inches along its second-longest side or 5 inches in height.
- Is cylindrical, including (without limitation) mailing tubes, cans, buckets, barrels, drums or pails.
- Is bound with metal, plastic or cloth banding, or has wheels, casters, handles, or straps (including packages where the outer surface area is loosely wrapped, or where the contents protrude outside the surface area) could impede or cause damage to other packages or the FedEx sortation system.
NOTE: Package shape and dimensions may change during transit, which can affect the package’s dimensional weight and surcharge eligibility. If the dimensions change during transit. FedEx has the power to make appropriate adjustments to the shipment charges at any time which often results in shocking charges on invoices.
Fuel surcharge for FedEx ground and express
Naturally, as the price of oil increases, so does the cost of fuel. This means this surcharge fluctuates every week and is harder to control. An Air fuel surcharge could be at 7% percent one week and then jump up to 7.5% the next week resulting in a 7.14% increase from the previous week. For FedEx Ground, the fuel surcharge percentage will be subject to adjustment using the National U.S. On-Highway Average price for a gallon of diesel fuel, as published by the U.S. Department of Energy. For FedEx Express, the fuel surcharge percentage will be subject to adjustment using the U.S. Gulf Coast (USGC) spot price for a gallon of kerosene-type jet fuel, as published by the U.S. Department of Energy. For most shippers, discounts on fuel are non-negotiable and cannot be adjusted. Reducing the other line item expenses will result is a lower cost basis for fuel surcharges.
Delivery area surcharge
A delivery area surcharge applies to package shipments destined to select U.S. ZIP codes. Also, a delivery area surcharge applies to FedEx Express and FedEx Ground shipments destined for areas in Alaska and Hawaii that are remote, sparsely populated
or geographically difficult to access. Go to FedEx for a list of ZIP codes where this surcharge applies.
A maximum charge may apply for shipments receiving FedEx multiweight pricing. For FedEx Ground packages that exceed 70 lbs. and are destined to an Alaska ZIP code that receives the delivery area surcharge, the applicable fee will be 3.5 times the Alaska commercial or Alaska residential charge.
A 2.5% surcharge will apply to shipments that are billed to a third party. The surcharge applies when an account unrelated to the shipper, which is determined by FedEx, is billed as a third party for the shipment. The third-party billing surcharge applies to your entire shipping costs, including your base rates and any additional surcharges and fees. It will be charged to the third-party payer. This surcharge is one way for carriers to keep up with prolific e-commerce purchases and shipments.
Read more: What is a third-party billing surcharge
For FedEx Express, if the shipper provides an incomplete or incorrect shipping address, FedEx may try to find the correct address to finish delivery using the address included in the shipper’s electronic shipment information to decide whether an address correction is necessary.
FedEx may use the address included in the shipper’s electronic shipment information to determine whether an address correction is necessary and then determine a shipping fee for this correction.
For FedEx Ground, if the shipper provides an incomplete, incorrect or P.O. box recipient address, FedEx will attempt to determine the correct address, complete delivery and notify the shipper of the address correction using the address included in the shipper’s electronic shipment information to decide whether an address correction is necessary. FedEx determines an additional charge for delivery or attempted delivery to the corrected address.
Lower shipping costs today
If you’re noticing these surcharges on your carrier invoices, it’s recommended to audit every invoice line by line. Enlist the help of Share a Refund to audit your shipments, analyze your shipping profile, navigate carrier negotiations and ensure you are being charged fairly and accurately by your carrier.