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Holiday Shipping Just Got a Little More Expensive

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As FedEx braces for another holiday peak season bringing high demand and rising operating costs, the logistics giant is reevaluating peak surcharges and fees.

U.S. Express package services, U.S. ground services and international ground service will be subject to a peak handling surcharge of $5.95 per package from Oct. 4-Jan. 16, the shipping firm said.

For the same period and services, a peak oversize charge of $62.50 per package will be incurred. A peak surcharge for FedEx Ground Economy package services will be implemented in stages–$1.50 per package for Nov. 1-28, $3.00 per package for Nov. 29-Dec. 12 and $1.50 per package for Dec. 13-Jan. 16.

Customers at the enterprise level that meet a certain volume threshold will be charged a peak residential delivery charge for packages shipped during Nov. 1-Jan.16. The scope of a customer’s volume will be determined by FedEx in its sole discretion.

The charge will be assessed in addition to the customer’s residential delivery charge. Any contracted discount or cap the customer may have on the residential delivery charge will not apply.

For customers who ship more than 25,000 weekly average residential and FedEx Ground Economy packages from Oct. 4–17, the charge will apply Nov. 1–Dec. 12. The amount charged per package will be based on a peaking factor, calculated as weekly average residential and FedEx Ground Economy packages shipped Oct. 4–17, 2021, divided by weekly average residential and FedEx Ground Economy packages shipped Feb. 3, 2020-March 1, 2020, multiplied by 100.

For customers that ship more than 25,000 weekly average residential and FedEx Ground Economy packages from Nov. 15–28, the charge will apply Dec. 13–Jan. 16. The amount charged per package will be based on a peaking factor, calculated as weekly average residential and FedEx Ground Economy packages shipped Nov. 15–Nov. 28, divided by weekly average residential and FedEx Ground Economy packages shipped Feb. 3, 2020–March 1, 2020, multiplied by 100. For weeks with holidays, weekly average value will be prorated based on the FedEx normal operating days during non-holiday weeks.

Beginning on Jan. 17, customers that shipped more than 25,000 weekly average residential, excluding FedEx One Rate packages and FedEx Ground Economy packages, during either of the calculation periods will be charged an additional 60 cents per residential package. Overall, these charges range from $1.115 per package to$6.00.

FedEx and USPS debuted fees and surcharges ahead of the peak holiday season, which is expected to bring high demand and constrain capacity.

USPS is raising some rates from Oct. 3-Dec. 26.

FedEx said since it anticipates the surge in residential volume to carry over into the new year, it will put in place a residential delivery charge for FedEx Express and FedEx Ground U.S. domestic residential packages, excluding FedEx Ground Economy and FedEx One Rate packages, of an additional 60 cents per package beginning Jan. 17.

The United States Postal Service (USPS) said earlier this month that its 2021 peak-season pricing would affect prices on commercial and retail domestic competitive parcels–Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, USPS Retail Ground and Parcel Return Service. International products would be unaffected.

The temporary rates will go into effect on Oct. 3 and remain in place until Dec. 26.

“This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices,” USPS said.

Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground rate increases range from 25 cents to 75 cents for minimum weight flat rate boxes and envelopes, to 75 cents to $1.50 and $3.00 for 11-pound to 20-pound boxes and $2.50 to $5.00 for 21 pound to 70-pound boxes.

In April, UPS raised its international freight rates in a range of 11 cents per pound to 34 cents per pound depending on the specific service. Higher rates were put on shipments from China and Hong Kong as of May 23, ranging from $1.36 per pound to $2.15.

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