FedEx Announces 2021 Peak Season Surcharges
Carrier giant FedEx recently announced various peak season surcharges similar to USPS that will begin on Oct. 4 and end on Jan. 16, 2022. The changes will primarily impact Express and Ground home shipments as a way to keep service levels as high as possible during peak shipping season.
The FedEx peak season surcharge in 2021 applies to the following:
- Peak additional handling surcharge of $5.95 per package for U.S. Express Package Services, U.S. Ground Services, and International Ground Service of $5.95 per package effective Oct. 4, 2021, through Jan. 16, 2022
- Peak oversize charge for U.S. Express Package Services, International Ground Service, and U.S. Ground Services of $62.50 per package effective from Oct. 4, 2021, through Jan. 16, 2022
- $1.50 peak surcharge on FedEx Ground Economy Package Services from Nov. 1, 2021, to Nov. 28, 2021. This surcharge is $3 per package from Nov. 29, 2021, to Dec. 12, 2021. It is $1.50 per package from Dec. 13, 2021, through Jan. 16, 2022.
- Peak Ground Unauthorized Package Charge for U.S. Ground Services and International Ground Service of $350 per package
- Residential Delivery Charge for FedEx Express and FedEx Ground U.S. domestic residential packages of $0.60 per package starting on Jan. 17, 2022
- Any FedEx customer that ships over 25,000 packages will be charged for residential packages that ship out between Nov. 1 and Jan. 16, 2022, based on the number of packages shipped compared to the volumes submitted in February 2020
According to Brie Carrere, FedEx's Chief Marketing and Communications Officer, FedEx will continue to prioritize capacity for commercial packages in addition to small and medium customer segments. She also noted that peak season surcharges are becoming the new normal and it helps to align pricing with incurred costs.
Gearing up for capacity shortages
According to UPS, this year's peak demand is expected to exceed capacity by 5 million packages daily. This increased demand forces carriers such as FedEx and UPS to implement surcharges to make up for limited trucking capacity.
As these surcharges continue to appear, it's not surprising that regional carriers are becoming increasingly popular.
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