Online sellers expecting FedEx to follow in its rival’s footsteps by implementing a holiday surcharge for residential deliveries were pleasantly surprised on Thursday. But while FedEx is taking a pass on implementing a holiday surcharge for residential deliveries, unlike UPS, it will implement a holiday-season surcharge for shipments that are oversized, unauthorized, or where additional handling is required.
The Wall Street Journal called the decision “a gamble that it can cover the extra costs during a period when daily volume can double to more than 26 million packages.”
As we noted in June, UPS announced a new peak charge applicable during selected weeks in November and December 2017 for U.S. Residential, Large Packages and packages Over Maximum Limits.
Press release follows:
FedEx Corp. announced today that the company will not apply residential Holiday season surcharges, except in the case of packages that require additional handling, are oversized or unauthorized.
The volume of oversized packages moving through the FedEx Ground network during the Holiday season has increased by approximately 240 percent over the past 10 years and is now about 10 percent of all volume handled by FedEx Ground. FedEx has engineered its networks to add sortation and delivery capabilities to accommodate the continued rise in demand for larger, heavier packages, including entire facilities temporarily dedicated to oversized packages.
The Holiday season surcharge will be effective Nov. 20, 2017, through Dec. 24, 2017. FedEx Express and FedEx Ground in the U.S. and Canada will increase the surcharge during this period for additional handling by $3 per package, for oversize goods by $25 per package, and for unauthorized shipments by $300 per package.
Details of the surcharges are available here.
“To support our millions of loyal small business customers and consumers shipping holiday gifts at FedEx Office and FedEx Onsite locations, FedEx will not apply holiday season surcharges except for packages that are oversized, unauthorized or require additional handling,” said Patrick Fitzgerald, senior vice president, Integrated Marketing and Communications, FedEx. “These packages consume an inordinate amount of cubic space in FedEx Ground and FedEx Express equipment in the U.S. and Canada. Another important solution to this issue is for Congress to adopt a nationwide standard of twin trailers at 33’ versus 28’. This would increase package capacity per trip, increase safety on the highways and use less fuel. Thirty-three foot twin trailers are currently permitted in only 20 states, and FedEx advocates for a nationwide standard of twin trailers at 33’ but no increase in total weight.”
SOURCE: FedEx Press Release