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FedEx Joins UPS in Imposing COVID Surcharge Fees

FedEx Joins UPS in Adding COVID Surcharge Fees

Following in UPS’s footsteps, FedEx is imposing a temporary surcharge on certain types of packages as shipping carriers struggle with the surge related to shop-from-home orders due to the coronavirus pandemic. But like the UPS surcharge, the move will largely impact high-volume shippers as well as “oversize” packages.

FedEx began its June 3rd announcement by stating it is an essential business that is keeping commerce moving and delivering critical shipments to homes during the COVID-19 crisis.

“As the impact of the virus continues to generate a surge in residential deliveries and has also generated a surge in oversize, hard-to-handle packages, we have experienced increased operating costs across our network,” it stated.”

FedEx is implementing three temporary peak surcharges beginning June 8, 2020:

1) FedEx SmartPost packages: $0.40 per package (FedEx SmartPost is a contract-only service).

2) Peak – Oversize Charge: $30 per package for US domestic FedEx Express and FedEx Ground packages (oversize is considered any package that exceeds 96 inches in length or 130 inches in length and girth).

3) Peak – Residential Delivery Charge: $0.30 per package for US domestic residential FedEx Express and FedEx Ground packages (applies to customers at the enterprise level whose volume exceeds 120% of their typical weekly volume – see the website for specific details).

The Wall Street Journal broke the news, and you can find the details on the FedEx website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.