In the first of what will be many small parcel carrier announcements over the coming months, FedEx stated it will begin charging its seasonal “Demand Surcharges” on October 4, with additional charges and higher amounts building throughout the peak holiday season and into mid-January.
Of note is that the carrier also clarified that effective September 4, FedEx will refer to its Peak Surcharges as Demand Surcharges moving forward.
Similar to last year, bulky shipments are the most impacted, with additional fees for Additional Handling, Oversize, and UnAuthorized Oversize-eligible packages.
Additionally, large-volume residential shippers may be penalized with a Residential Delivery Charge based on the Peaking Factor — a calculation based on the company’s increased package volume above its June baseline compared to specific weeks during this year’s peak demand season.
FedEx Ground Economy shippers will pay a surcharge ranging from $1.60 to $2.60 during the upcoming season.
Important: The specifics of how some of the Demand Surcharges will impact your costs will depend on your company’s Peaking Factor. You can read the full announcement here: https://www.fedex.com/en-us/shipping/rate-changes/demand-surcharges.html
It’s not too late to avoid the rising cost of Demand Surcharges and the upcoming GRIs. To discuss ways to avoid the impact of these additional fees, contact email@example.com.
From the carrier’s website: