FreightWaves: FedEx to Apply Peak Season Surcharges As Early As September

(Image Source: ShipEngine)

With the holiday season right around the corner, FedEx has unveiled its peak season surcharges and fees for a number of its services. There will be several differences, as well as a different formula for the peak surcharges this year, as seen in the table below. That being said, the company did not disclose in detail why they are applying a new formula for surcharges this peak season.

(Image Source: FedEx)

The first surcharges cycle will start as soon as September 5th and will end on October 2nd. FedEx will charge $3.45 per package for the “additional handling” of domestic express and ground parcels, as well as for international ground service. The first cycle will kick off relatively earlier than in previous years. The applied surcharges will also be increased to  $6.55 per package in the next cycle, closer to the holiday season. 

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Apart from additional handling surcharges, other peak surcharges will take effect slightly later. Surcharges for FedEx’s peak residential deliveries will change weekly, starting October 10th. The first cycle of peak surcharges for FedEx’s “Ground Economy” service will run from October 31st to November 27th. Residential delivery surcharges will begin on October 31 and run until January 15.

In the past, the level of surcharges and the peak surcharges cost will be calculated based on a shipper’s peak volumes compared to its weekly volumes from a prior period. In 2021, due to the unprecedented pandemic situation, FedEx used shipping data from February 2020, the last normal month before package volumes became overloaded. 

This year, the surcharge calculation will take into account the weekly average residential and Ground Economy parcels shipped in June (June 6 to July 3).

Source: Fedex sets earlier start date for peak delivery surcharges

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