FedEx announces new surchargesfor shippers (effective Sept 3rd) for the following charges: Additional Handling (weight), Oversize/ Large Package (residential), Unauthorized Oversize/ Over Maximum, and Audit Fee (shipping charge correction).
This move brings FedEx in line with surcharges already implemented in June and July by UPS — and eliminates a price advantage held by FedEx shippers.
Below is a tabled recap of all the mid-year pricing changes from both carriers and their effective date:
2018 Mid-Year Carrier Surcharge Rate Hikes
Charge
UPS 2018
UPS 2018 (New)
Eff. Date
FDX 2018
FDX 2018 (New)
Eff. Date
Additional Handling – Weight
$12.00
$19.00
7/8/2018
$12.00
$20.00
9/3/2018
Oversize/Large Package – Residential
$80.00
$90.00
7/8/2018
$80.00
$80.00
n/a
Unauthorized Oversize/Over Max
$500.00
$650.00
6/4/2018
$300.00
$675.00
9/3/2018
Audit Fee – Shipping Charge Corrections
n/a
6% of total or $1/per
6/4/2018
n/a
n/a
n/a
Notable in the announcement is the new rate for Additional Handling – Weight (packages over 70lbs), which jumps rom $12 to $19 (UPS) and $20 (FedEx).
Also, the new rate for Over Max/Unauthorized Oversize jumps from $500 to $650 (UPS) and from $300 to $675 (FedEx).
As with all rate announcements from the carriers, we recommend a detailed review of the impact of the changes on your specific shipping program. The real impact of all new surcharges is individual to each company, depending on whether you are a FedEx Shipper, or use another carrier. Contact us via www.transportationimpact.com for a no obligation consultation to help you understand precisely what the changes mean to your shipping costs.
