New Phase For Year-round Peak Surcharges

FedEx Unveils 2021 Holiday Peak Surcharge (And One After-Christmas Surprise)

Remember when we told you not to be surprised if FedEx announced holiday peak surcharge increases sometime soon?

Well “sometime soon” came on August 13, when the company shared plans to implement the following additional charges for holiday shippers:

  • A $5.95 Peak Additional Handling Surcharge for its U.S. Express Package, U.S. Ground and International Ground services (effective October 4-January 16). This represents $2.45 more than the current $3.50 Peak Additional Handling Surcharge and reflects a 21.43% increase over last holiday season.
  • A $62.50 Peak Oversize Charge for its U.S. Express, U.S. Ground and International Ground services (effective October 4-January 16). This is more than twice as much as the current $30 Peak Oversize Charge and represents a 19.05% increase over last holiday season.
  • Peak Surcharges of anywhere from $1.50 – $3.00 per package for FedEx Ground Economy services depending on the dates shipped (effective November 1-January 16). This adds up to anywhere from $0.50 to $2 more than the current $1 Peak Surcharge and represents a 50% increase over last holiday season. 

 

FedEx also announced plans to continue the Peak Residential Delivery Charge for shippers who ship more than 25,000 weekly residential packages immediately after the holiday peak (effective January 17, 2022). That charge will be $0.60 per package. This is twice as much as the $0.30 per package that FedEx charged for high-volume weekly shippers (who were then defined as those who shipped more than 30,000 packages per week) during the first half of 2021. 

To get more details and view FedEx’s full announcement, click here.

And, as always, let AFS know if you have any questions. Our parcel experts are continually analyzing the potential impacts of all carriers’ rate and policy changes, and we’re here to help you navigate the ramifications.

USPS Proposes Peak Season Rate Increases

It continues to be a climb for peak season small parcel shipping charges – and not just at FedEx and UPS.

On August 10, the United States Postal Service announced proposed plans to implement temporary rate increases for peak holiday season, which it defines as the period between October 3 and December 26.

Currently in review with the Postal Regulatory Commission (which almost assuredly will approve it), the new charges could increase your company’s small parcel shipping charges by:

  • As much as $5 per package for heavy Priority Mail and Parcel Select packages
  • As much as 39% for Parcel Select lightweight packages
  • And as much as 31% for Parcel Return services

 

For more information about specific impacts – including your possible price increases by zone and parcel weight – check out the announcement on the USPS website. Or give AFS a call to discuss the particulars.

Photo credit: TonelsonProductions / Shutterstock.com

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