2022 FedEx Peak Season Surcharges
FedEx has announced in order to keep up with increased demand and maintain its high delivery standards during the anticipated surge in shipping volume. The peak surcharges are necessary to cover increased operating costs across their network.
The 2022 FedEx peak season surcharges are below:
- Peak – Additional Handling Surcharge: An additional handling surcharge of $3.45 (Sept. 5–Oct. 2, 2022) and $6.55 (Oct. 3, 2022–Jan. 15, 2023) will be added per package for U.S. Express® Package Services, U.S. Ground Services, and International Ground Service.
- Peak – Oversize Charge: An oversize package charge in the amount of $39.50 (Sept. 5–Oct. 2, 2022) and $68.75 (Oct. 3, 2022–Jan. 15, 2023) will be added per package for U.S. Express Package Services, U.S. Ground Services, and International Ground Service.
- Peak – Ground Unauthorized Package Charge: A surcharge of $385 per package will be added for ground unauthorized packages from Oct. 3, 2022–Jan. 15, 2023. This surcharge applies to U.S. Ground Services and International Ground Services.
- Peak Surcharge: A surcharge of $1.50 (Oct. 31, 2022–Nov. 27, 2022, and Dec. 12, 2022–Jan. 15, 2023) and $2.50 (Nov. 28, 2022–Dec. 11, 2022) will be added to each package shipped with FedEx Ground® Economy Package Services (FedEx Ground Economy is a contract-only service).
- Peak – Residential Delivery Charge: FedEx Express and FedEx Ground U.S. domestic residential packages, excluding FedEx Ground Economy and FedEx One Rate® packages, will be assessed a variable fee from Oct. 31, 2022–Jan. 15, 2023, as explained below.
Peak – Residential Delivery Charge explained
In addition to per package fees listed above, FedEx is instituting a dynamically adjusted Peak Residential Delivery Charge for customers who ship more than 20,000 residential and FedEx Ground Economy packages weekly during peak season. The Residential Delivery Charge will be calculated according to weekly volume and applied after a two-week lag. The amount charged will be based on a Peaking Factor, which is a percentage increase over a baseline weekly volume determined from June 6, 2022 – July 3, 2022.
The percentage increase is determined by dividing the number of packages shipped during the week by the established baseline number and then multiplying by 100. For example, if a company’s baseline number is established at 15,000 packages a week, and they ship 30,000 packages during the week of Oct. 17 – Oct. 23, the Peaking Factor would be 200%. The rate corresponding to the Peaking Factor will be applied two weeks later, which in this example would be Nov. 7 – Nov. 13.
Peaking Factor charges are tied to percentages as follows:
- 105% – 125% increase will be charged $1.25 for FedEx Ground and $2.25 for FedEx Express.
- 125% – 150% increase will be charged $1.75 for FedEx Ground and $2.75 for FedEx Express.
- 150% – 200% increase will be charged $2.00 for FedEx Ground and $3.00 for FedEx Express.
- 200% – 300% increase will be charged $2.50 for FedEx Ground and $3.50 for FedEx Express.
- 300% – 400% increase will be charged $4.25 for FedEx Ground and $5.25 for FedEx Express.
- >400% increase will be charged $6.00 for FedEx Ground and $7.00 for FedEx Express.
Please note that this Peak Residential Delivery Charge will be applied in addition to the Residential Delivery Charge, and contracted discounts or caps on the Residential Delivery Charge will not apply.
Prepare for peak season now
Carriers like FedEx, UPS, and USPS are geared up and ready to roll for peak season, taking steps to ensure they can get packages delivered on time despite high demand. Soon, orders will start ramping up as consumers start their holiday shopping online. The best time for ecommerce to prepare is now.
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