Well, it didn’t take long for FedEx to play “Follow the Leader” by reporting that they too will be implementing what they call “Temporary and Peak Surcharges.” These new surcharges will become effective on Monday, June 8, 2020 and will remain in effect until FedEx decides it is time to remove them. One of the new FedEx Surcharges will apply to FedEx’ Smart Post contract service and will add $0.40 to every Smart Post package shipped.
In addition to the Smart Post surcharge, FedEx is implementing a “Peak Oversize Surcharge” which will apply to packages that exceed 96” in length or 130” in length and girt combined. The Peak Oversize FedEx Surcharge will cost FedEx shippers an additional $30.00 per package.
FedEx will also be applying a “Peak Residential Surcharge” of $0.30 per package to their Enterprise customers who ship in excess of 40,000 Ground and Residential packages combined in a given week. The $0.30 per package surcharge will apply to those Enterprise Customers whose average weekly volume increases by more than 120% compared to the volumes those companies shipped back in February, 2020.
This is a clear indication that FedEx’ ground package volume is increasing substantially. This is at a time when there LTL volumes have been reduced. FedEx, in an effort to help handle the excess ground package volumes has said they will be looking into breaking down the service barriers they had themselves placed on sharing operations between their two separate operating divisions. This move is long overdue and should be a welcome addition to their overall operation efficiencies.
As we said with the UPS Peak Season Surcharge announcement, it certainly appears that both of these companies will be upsetting their best customers by implementing these new surcharges. Only time will tell how those volume shippers will react.
Learn more at FedEx’s website by clicking here
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