Following on the heal of Peak Season Shipping Surcharge announcements by UPS and the US Postal Service, FedEx has announced that their Peak Shipping Surcharges will begin to take effect on October 5, 2020 and are scheduled to end on January 17, 2021, with some minor exceptions. The following are some highlights of these Peak Season Surcharges for shippers to digest. For more information click on the following link to access the full details of these surcharges directly from the FedEx website
Peak – Oversize Charge
$52.50 per Package
Applies to all US Express Package Services, US Ground Services and all International Ground Services
Peak- Ground Unauthorized Package Charge
$350.00 per Package
Applies to all US Ground Services and all International Ground Services
Peak – Additional Handing Surcharge
$4.90 per Package
Applies to all US Express Package Services, all US Ground Services and all International Ground Services
Peak – Surcharge
$1.00 per package for the period between November 2, 2020 through November 29, 2020
$2.00 per Package for the period between November 30, 2020 and December 6, 2020
$1.00 per Package for the period between December 7, 2020 and January 17, 2021
Applies to all FedEx SmartPost Package Services. NOTE: The temporary surcharge on all FedEx SmartPost packages that began on June 8, 2020 will end on November 1, 2020 and be replaced by the above surcharges
Peak – Residential Delivery Charge
Applies to all US Package Services and all US Ground Services. NOTE: The Peak Residential Delivery Charge that began on June 8, 2020 will end on November 1, 2020 and be replaced by the above surcharges
Now that the Trifecta of Peak Season Surcharges has been announced, shippers will have to take a deep dive into their budgets for the remainder of this calendar year and figure out which parcel service provider would be the best regarding service and rates, that is if there is one clear winner. On the other hand, they may have to make routing decisions that may involve two or more parcel service providers to handle their Peak Season shipping needs.
Whichever road they choose however, it will be filled with complaints from their customers regarding later than normal deliveries. And the kicker here is that the shippers cannot file for refunds for late deliveries since they have been eliminated as an option by the major parcel carriers.
If this all seems daunting– that’s by design.
ICC Logistics has been doing this for over 45 years and has the skills, the data and the relationships to help you do the research and make the hard decisions. Learn more about how we do that here
And if you want to learn a little bit more about why logistics is so complicated, a visit through history may be just what you need…
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