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Cost of Shipping FedEx Going Up on June 21

FedEx
Cost of Shipping FedEx Going Up on June 21

It may cost online sellers more to ship via FedEx beginning June 21 thanks to some changes the carrier is making. Higher rates for surcharges can be found on this page of FedEx.com under “Peak surcharges and fees for U.S. Express and Ground services and Ground International” (updated May 21, 2021).

They include an increase of 50 cents for “Peak – Additional Handling Surcharge” for U.S. Express Package Services, U.S. Ground Services, International Ground Service. You can find more information about *current* fees and surcharges in this guide on FedEx.com (PDF format).

Logistics publication the Loadstar has a good explanation of what’s changing and noted that FedEx cited “increased costs from the surge in online shopping straining its systems and that they are necessary to maintain service levels.”

Significantly, while FedEx and UPS used to consider “peak” period to be during the holiday shopping season, new peak surcharges are the new normal. “Both US integrators extended their traditional peak season surcharges indefinitely beyond the customary mid-January cut-off point this year,” Loadstar wrote.

Logistics consultant Cathy Roberson pointed out that FedEx is also adjusting fuel tables for Ground, Freight & Express, “which will likely mean higher $ fuel surcharges – not to mention, beginning in June, FedEx will also implement a 6% late payment fee for outstanding invoices.”

MultiChannel Merchant reported on the new surcharges and had a blunt assessment: “Analysts and shippers have griped that these charges are showing up as FedEx reports stellar financial results to Wall Street, calling them opportunistic.”

For a better understanding of FedEx additional handling surcharges, check out the following video from Refund Retriever published in June of last year.

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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/.