FedEx Announces its Annual Peak Holiday Surcharges for 2022
August 11, 2022 •ShipSigma
In the past year, large shippers have experienced high fuel surcharges and carrier capacity. Now, FedEx is doubling down. Starting earlier than anticipated, FedEx has announced that some peak holiday surcharges will begin on September 5th and see an additional increase at the beginning of October.
Most of these surcharges surpass their prices from last year. Starting on October 3rd, expect to see a 10% YoY increase for Additional Handling, Oversized Packages, and Ground Unauthorized.
Peak Surcharges for FedEx Ground will see a 20% decrease between Nov 29th – Dec 12th.
|
Surcharge name |
Applicable services |
2022 Surcharge |
2021 Surcharge |
|
Peak — Additional Handling Surcharge |
U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$3.45 per package Effective Sept. 5, 2022–Oct. 2, 2022 |
N/A |
|
$6.55 per package Effective Oct. 3, 2022–Jan. 15, 2023 |
$5.95 per package |
||
|
Peak — Oversize Charge |
U.S. Express Package Services, U.S. Ground Services, International Ground Service |
$39.50 per package Effective Sept. 5, 2022–Oct. 2, 2022 |
N/A |
|
$68.75 per package Effective Oct. 3, 2022–Jan. 15, 2023 |
62.50 per package |
||
|
Peak — Ground Unauthorized Package Charge |
U.S. Ground Services, International Ground Service |
$385.00 per package Effective Oct. 3, 2022–Jan. 15, 2023 |
$350.00 per package |
|
Peak Surcharge |
FedEx Ground® Economy Package Services2 |
$1.50 per package |
$1.50 per package |
|
Peak — Residential Delivery Charge |
FedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate® packages). |
Based on Peaking Factor |
Based on Peaking Factor |
“As FedEx prepares for high demand during peak holiday season, we are adjusting our networks to best deliver for our customers,” FedEx said. “We again anticipate the surge in residential volume to carry over into the new year.”
FedEx, which recorded more than $250 million in revenue during the 2021 peak season, says these fees are necessary to keep service levels up. However, from a consumer perspective, these prices clearly align with their newest strategy to make a larger profit on every shipment.
This strategy makes for an expensive Q4 for any shipper whose volume picks up during the holiday season, but especially for those who are shipping over 20,000 residential and ground economy weekly starting October 10th.
The amount charged per package, adjusted weekly, will be based on a Peaking Factor, which is determined by dividing the residential and FedEx Ground Economy packages shipped during the corresponding Calculation Week by the weekly average residential and FedEx Ground Economy packages shipped June 6th, 2022-July 3rd, 2022, and then multiplying by 100. Peaking Factor and amount charged are determined separately for FedEx Express and FedEx Ground.
|
Peaking Period |
Calculation Week |
Application Week |
||
|
1 |
October 10, 2022 |
October 16, 2022 |
October 31, 2022 |
November 6, 2022 |
|
2 |
October 17, 2022 |
October 23, 2022 |
November 7, 2022 |
November 13, 2022 |
|
3 |
October 24, 2022 |
October 30, 2022 |
November 14, 2022 |
November 20, 2022 |
|
4 |
October 31, 2022 |
November 6, 2022 |
November 21, 2022 |
November 27, 2022 |
|
5 |
November 7, 2022 |
November 13, 2022 |
November 28, 2022 |
December 4, 2022 |
|
6 |
November 14, 2022 |
November 20, 2022 |
December 5, 2022 |
December 11, 2022 |
|
7 |
November 21, 2022 |
November 27, 2022 |
December 12, 2022 |
December 18, 2022 |
|
8 |
November 28, 2022 |
December 4, 2022 |
December 19, 2022 |
December 25, 2022 |
|
9 |
December 5, 2022 |
December 11, 2022 |
December 26, 2022 |
January 1, 2023 |
|
10 |
December 12, 2022 |
December 18, 2022 |
January 2, 2023 |
January 8, 2023 |
|
11 |
December 19, 2022 |
December 25, 2022 |
January 9, 2023 |
January 15, 2023 |
For more information visit: https://www.fedex.com/en-us/shipping/rate-changes/peak-surcharges.html
Frequently Asked Questions About FedEx Peak Holiday Surcharges
When do FedEx peak holiday surcharges start in 2022?
Some surcharges begin September 5, 2022, earlier than in prior years, with a second tier taking effect October 3, 2022. The October tier carries higher per-package rates and runs through January 15, 2023.
How much did FedEx increase the Additional Handling surcharge for the 2022 peak season?
The peak Additional Handling surcharge rose 10% year-over-year to $6.55 per package for the October 3 through January 15 window. An earlier tier at $3.45 per package applied September 5 through October 2, a rate with no equivalent in 2021.
How is the FedEx Peak Residential Delivery Charge calculated?
The charge uses a Peaking Factor derived by dividing the residential and FedEx Ground Economy packages shipped during a given calculation week by the weekly average shipped June 6 through July 3, 2022, then multiplying by 100. The resulting factor determines the per-package amount applied two weeks later, calculated separately for FedEx Express and FedEx Ground.
Which FedEx peak surcharges apply specifically to Ground Economy packages?
The Peak Surcharge for FedEx Ground Economy packages runs October 31, 2022 through January 15, 2023, with rates of $1.50, $2.50, and $1.50 per package across three sub-periods. The $2.50 rate for November 28 through December 11 represents a 20% decrease from the $3.00 rate FedEx charged during the same window in 2021.
Did all FedEx peak surcharges increase compared to 2021?
Most surcharges increased, with Additional Handling, Oversize Charge, and Ground Unauthorized Package Charge each rising 10% year-over-year. The Ground Economy Peak Surcharge was the exception, with its November 28 through December 11 peak rate falling 20% from $3.00 to $2.50 per package.