The 2021 peak season is shaping up to break records. USPS is getting in on the mix of higher peak costs as Business Insider reports, "On everything from the base level flat rate boxes and envelopes to much larger items, USPS is increasing costs between October 3 and December 26." In a blog last week, we discussed how UPS announced new fuel surcharge increases. Now it comes as no surprise that FedEx is following suit and has announced peak season surcharge increases as well. Shippers need to know these new FedEx peak season surcharge increases, how they'll impact total shipping spend, and how data can help mitigate them.
The new peak season surcharges are an attempt by FedEx to ensure capacity and account for increased operating costs across the network through peak season. Surcharges range from an additional $0.60 for the residential delivery charge through a 108.33% increase in peak oversize charges. Here is the full breakdown of the increases:
SurchargeServices ImpactedAmountEffective DatesPeak Additional Handling SurchargeU.S. Express Package Services, U.S. Ground Services, International Ground Service$5.95 per packageOct. 4, 2021€“Jan. 16, 2022Peak Oversize ChargeU.S. Express Package Services, U.S. Ground Services, International Ground Service$62.50 per packageOct. 4, 2021€“Jan. 16, 2022Peak Ground Unauthorized Package ChargeU.S. Ground Services, International Ground Service$350.00 per packageOct. 4, 2021€“Jan. 16, 2022Peak SurchargeFedEx Ground® Economy Package Services2$1.50 per package
$3.00 per package
$1.50 per packageNov. 1, 2021€“Nov. 28, 2021
Nov. 29, 2021€“Dec 12. 2021
Dec. 13, 2021€“Jan. 16, 2022Peak Residential Delivery ChargeFedEx Express and FedEx Ground U.S. domestic residential packages (excluding FedEx Ground Economy and FedEx One Rate packages).Additional $0.60 per packageBeginning Jan. 17, 2022
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As more carriers continue to evaluate their last-mile delivery costs and customer experience for areas of improvement, UPS put "their money where their mouth was" by purchasing leading software-as-a-service technology Delivery Solutions.