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