The holidays are undoubtedly the busiest season for retailers and, as a result, for carriers as well. Carriers like FedEx, DHL and UPS have introduced holiday surcharges in recent years to capitalize on the influx of shipping. FedEx recently announced it will not apply additional residential surcharges during the holiday season but will place surcharges on packages that are oversized, unauthorized or require additional handling.
Here’s what you need to know to keep your Christmas gifts from getting hit with extra shipping fees.
FedEx peak surcharges for 2018 holiday season
|Peak surcharge||Applicable service||Surcharge amount 2017||Surcharge amount 2018||Total holiday Surcharge rate||Peak dates|
|Additional Handling Surcharge||U.S. express package services and U.S. and international ground services||$3.00 per package||$3.20 per package||$23.20||Nov. 19, 2018–Dec. 24, 2018|
|Ground Unauthorized Package Charge||U.S. and international ground services
|$300 per package||$150 per package||$825||Nov. 19, 2018–Dec. 24, 2018|
|Oversize Charge||U.S. express package services and U.S. and international ground services||$25.00 per package||$27.50 per package||$107.50||Nov. 19, 2018–Dec. 24, 2018|
FedEx peak holiday surcharges explained
Tis’ the season for carriers to announce holiday surcharges to shippers. It appears holiday surcharges are here to stay. As a shipper, the best way to prepare is to look at shipping data for last year around the holiday season and consider your forecast for this year.
FedEx Additional Handling Surcharge
On September 3, 2018, the FedEx Additional Handling Surcharge increases from $12 to $20 dollars. During the holiday season, shippers will experience a $3.20 surcharge per package. This means total shipping costs per package will be $23.20 for additional handling on a FedEx package.
Many shippers incur this additional handling surcharge because packages can easily fall within the parameters FedEx has set. An additional handling surcharge applies to any package that has an actual weight greater than 70 pounds and measures greater than 48 inches along its longest side and 30 inches on its second-longest side. The following packaging problems could also cause a shipper to receive the additional handling surcharge.
- The package is not fully encased in an outer shipping container
- The package is encased in an outer shipping container not made of cardboard materials, including but not limited to metal, wood, canvas, leather, hard plastic, soft plastic or expanded polystyrene foam.
- The package is encased in an outer shipping container covered in shrink wrap or stretch wrap
- The package is encased in a soft-sided pack that measures over 18 inches along its longest side or 13 inches along its second-longest side or 5 inches in height
- The package is cylindrical, including (without limitation) mailing tubes, cans, buckets, barrels, drums or pails
- The package 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)
- The package could become entangled in or cause damage to other packages or the FedEx sortation system.
FedEx Ground Unauthorized Package Surcharge
FedEx will significantly raise this surcharge from $300 to $675 on September 3, 2018. During the peak shipping season, an additional surcharge of $150 will be issued to packages that fall under this category costing shippers $825 per package.
The Ground Unauthorized Package surcharge will hit any package with the following conditions:
• Measures more than 108 inches in length.
• Measures more than 165 inches in length and girth combined.
• Weighs more than 150 lbs.
FedEx Oversize Surcharge
During the normal year, the FedEx Oversize Surcharge is $80. During the peak shipping season, $27.50 will be added to the surcharge to bump it up to $107.50.
An oversize charge applies to packages that measure more than 96 inches in length or 130 inches in combined length and girth.
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