You have to constantly keep an eye on your carrier’s next move. Just when you think surcharges are settled for the year, new increases are announced. The two surcharges that are changing are the additional handling surcharge, which applies to packages weighing more than 70 pounds, and the ground unauthorized package surcharge, which applies to packages heavier than 150 pounds. If hit with this surcharge, your wallet will definitely feel it. The surcharges will increase by 67 and 125 percent, respectively. FedEx will also increase its fuel surcharge as the cherry on top of its surcharge sundae.
FedEx Additional Handling Surcharge
On September 3, 2018, the FedEx Additional Handling Surcharge will increase from $12 to $20 dollars. Since 2016, the surcharge has risen by $9.50, almost doubling the surcharge in only four years. This $20 surcharge will be placed on any package that weighs more than 70 pounds.
FedEx Ground Unauthorized Package Surcharge
FedEx is set to severely penalize any shipper who doesn’t comply with their set parameters. The unauthorized package surcharge isn’t as common but still needs to be discussed as rates continue to climb. On September 3, 2018, the FedEx Ground Unauthorized Package Surcharge will skyrocket from $300 to $675. Since 2016, the surcharge has risen by $565, quadrupling the surcharge in only four years.
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.
Note: These packages are unauthorized and still may be denied or returned to the shipper.
FedEx Fuel Surcharge
FedEx Express Fuel Surcharge
FedEx fuel charges can change without notice. The fuel surcharge percentage for FedEx Express services is subject to weekly adjustment based on the weekly published U.S. Gulf Coast.
FedEx is implementing the following fuel surcharges changes on September 10, 2018, for FedEx Express.
The old fuel surcharge for less than $1.91 was 5.75% and above $2.35 was 8.5%.
FedEx Ground Fuel Surcharge
The fuel surcharge percentage for FedEx Ground services is normally adjusted weekly based on the weekly published national U.S. on-highway average price for a gallon of diesel fuel.
FedEx is implementing the following fuel surcharges changes on September 10, 2018, for FedEx Ground.
The old fuel surcharge for less than $2.74 was 4.75% and above $3.73 was 7.75%
Why is FedEx increasing these surcharges?
E-commerce purchases have expanded to the point you can even buy your next mattress through Amazon. With the rise in online orders, products that come in a variety of sizes need to be shipped around the nation.
FedEx wants to curb shippers from sending oversized items through its network. Both UPS and FedEx are discouraging large, bulky packages because they require additional handling from employees and major adjustments when planning the logistics. Basically, FedEx will charge you outrageously for any inconvenience.