FedEx announces new surcharges for 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.