FedEx announces new surcharges for shippers (effective Sept 3rd) for the following charges: Additional Handling (weight), Oversize/ Large Package (residential), Unauthorized Oversize/ Over Maximum, and Audit Fee (shipping charge correction).
This move brings FedEx in line with surcharges already implemented in June and July by UPS — and eliminates a price advantage held by FedEx shippers.
Below is a tabled recap of all the mid-year pricing changes from both carriers and their effective date:
|2018 Mid-Year Carrier Surcharge Rate Hikes|
|Charge||UPS 2018||UPS 2018 (New)||Eff. Date||FDX 2018||FDX 2018 (New)||Eff. Date|
|Additional Handling – Weight||$12.00||$19.00||7/8/2018||$12.00||$20.00||9/3/2018|
|Oversize/Large Package – Residential||$80.00||$90.00||7/8/2018||$80.00||$80.00||n/a|
|Unauthorized Oversize/Over Max||$500.00||$650.00||6/4/2018||$300.00||$675.00||9/3/2018|
|Audit Fee – Shipping Charge Corrections||n/a||6% of total or $1/per||6/4/2018||n/a||n/a||n/a|
Notable in the announcement is the new rate for Additional Handling – Weight (packages over 70lbs), which jumps rom $12 to $19 (UPS) and $20 (FedEx).
Also, the new rate for Over Max/Unauthorized Oversize jumps from $500 to $650 (UPS) and from $300 to $675 (FedEx).
As with all rate announcements from the carriers, we recommend a detailed review of the impact of the changes on your specific shipping program. The real impact of all new surcharges is individual to each company, depending on whether you are a FedEx Shipper, or use another carrier. Contact us via www.transportationimpact.com for a no obligation consultation to help you understand precisely what the changes mean to your shipping costs.