FedEx Adds/ Extends Peak Season Surcharges Into 2022
As the carrier usually does this time of year, FedEx has announced several Peak Season Surcharges, with some having start dates as early as October 4th. The types of surcharges, start and end dates, and the shippers who will be affected are potentially different depending on their small parcel shipping characteristics and volumes. This makes it necessary for every shipper to look closely at the announcement to understand the potential cost impact of the surcharges on their business.
At first glance, the announcement appears to be typical of the carrier’s annual peak season surcharges, focusing on extra charges for residential deliveries and big, bulky packages. Of note is that there have already been similar surcharges in place (justified by the pandemic) for some time. So, the idea of “peak” surcharges is nothing new at this point in 2021. Shippers will also notice that the duration of surcharges follows the recent trend of the extra fees remaining in place through early January 2022 to capture post-holiday returns volume.
Here is the complete list of surcharges, copied from the carrier’s website:
Noteworthy Takeaways for High-Volume Residential Shippers
There are other details within the announcement that high-volume small parcel shippers should be aware of.
FedEx announced a Residential Peak Surcharge from November 1st to January 16, 2022, but it is the same one that has been in place since this past January and continuing through October 31st. However, during the upcoming peak season, a “Peaking Factor” is applicable based on volume thresholds the carrier details in its announcement. There are many footnotes to the chart above, so we encourage a closer look by all high-volume shippers. Or, talk to the Parcel Experts at TransImpact to make sure you’re not overlooking anything.
Then, beginning on January 17, 2021, shippers who eclipse the 25,000 packages per day threshold in any of the baseline periods will have to pay an additional $0.60 on every residential package, excluding OneRate and Ground Economy, on top of the already levied Residential Surcharge.
International Surcharge UPDATE August 19, 2021: FedEx announced an additional Peak Surcharge on international shipments. The details are also available on the link below. At a time when most shippers would have expected (or at least hoped) these surcharge conditions would subside, FedEx is increasing surcharges across almost every lane, with some surcharge amounts increasing as much as 5x from the current rate.
Here is the link to the FedEx announcement on its website: https://www.fedex.com/en-us/shipping/current-rates/surcharges-and-fees.html#peak-surcharge
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