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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
(10% Increase)

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
(10% Increase)

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
(10% Increase)

Effective Oct. 3, 2022–Jan. 15, 2023

$350.00 per package

Peak Surcharge

FedEx Ground® Economy Package Services2

$1.50 per package
Oct. 31, 2022–Nov 27, 2022



$2.50 per package
Nov 28, 2022–Dec 11, 2022
(20% Decrease)


$1.50 per package
Dec 12, 2022–Jan. 15, 2023

$1.50 per package


$3.00 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

 

 

 

 

 

 

 

 

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