Heads Up FedEx Shippers: New Surcharges Are Coming (effective Sept. 3rd)

 In Industry News

FedEx announces new surcharges (effective Sept 3rd) for the following charges: Additional Handling (weight), Oversize/ Large Package (residential), Unauthorized Oversize/ Over Maximum, and Audit Fee (shipping charge correction).

This move brings FedEx in line with surcharges already implemented in June and July by UPS — and eliminates a price advantage held by FedEx shippers.

Below is a tabled recap of all the mid-year pricing changes from both carriers and their effective date:

2018 Mid-Year Carrier Surcharge Rate Hikes
ChargeUPS 2018UPS 2018 (New)Eff. DateFDX 2018FDX 2018 (New)Eff. Date
Additional Handling – Weight$12.00$19.007/8/2018$12.00$20.009/3/2018
Oversize/Large Package – Residential$80.00$90.007/8/2018$80.00$80.00n/a
Unauthorized Oversize/Over Max$500.00$650.006/4/2018$300.00$675.009/3/2018
Audit Fee – Shipping Charge Correctionsn/a 6% of total or $1/per6/4/2018n/a n/a n/a

Notable in the announcement is the new rate for Additional Handling – Weight (packages over 70lbs), which jumps rom $12 to $19 (UPS) and $20 (FedEx).

Also, the new rate for Over Max/Unauthorized Oversize jumps from $500 to $650 (UPS) and from $300 to $675 (FedEx).

As with all rate announcements from the carriers, we recommend a detailed review of the impact of the changes on your specific shipping program. The real impact of all surcharges is individual to each company. Contact us via www.transportationimpact.com for a no obligation consultation to help you understand precisely what the changes mean to your shipping costs.

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