This article will be updated as more information becomes available. FedEx and UPS have begun releasing information on their residential surcharges during the holiday season. We are also seeing initial information on the 2020 FedEx shipping rate changes. Below is what we know so far.
Holiday Residential Surcharges
Both UPS and FedEx have announced that they’ll be suspending residential surcharges, a fee added to a shipper’s invoice for delivery to a residential home or building, for the holiday season.
UPS released the following statement:
For the 2019 holiday shipping season, there will be no Residential Peak Surcharge. Peak Surcharges applied to Over Maximum Limits, Large and Additional Handling packages have been modified.
They do not specify a date range just yet for what is considered the “holiday shipping season” but we can likely assume that means at least the week of Thanksgiving, Nov. 25, 2019, to the week of New Year’s Day, ending Jan 5, 2020. Peak surcharges will still apply to some package types, however.
FedEx has also released the following statement on their holiday residential surcharges:
FedEx is not charging additional holiday residential surcharges, except for shipments that are oversized, unauthorized or that require additional handling — these will be in addition to existing surcharges.
FedEx states that the above is effective Oct. 21, 2019 – Jan. 5, 2020. Both FedEx and UPS will still charge fuel surcharges during this time.
Effective Jan. 20, 2020 for FedEx
Fuel surcharge will be assessed on the following additional surcharges effective Jan. 20, 2020:
- For FedEx Express shipments: Additional Handling Surcharge, Additional Handling Surcharge – Non-stackable, FedEx® Delivery Signature Options, FedEx® Collect on Delivery and Peak – Additional Handling Surcharge.
- For FedEx Ground shipments: Additional Handling Surcharge, FedEx Delivery Signature Options, FedEx Ground® C.O.D., FedEx Ground® Electronic C.O.D., FedEx Home Delivery® Convenient Delivery Options and Peak – Additional Handling Surcharge.
How are fuel surcharges calculated? The fuel surcharge percentage for FedEx Ground® services is subject to weekly* adjustment based on the weekly published national U.S. on-highway average price for a gallon of diesel fuel. That asterisk is there because FedEx states that there is a lag between the fuel price index and the fuel surcharge. FedEx may use a longer lag when the fuel price posted on eia.gov is delayed. Below is an example from FedEx on how those fuel surcharges are represented.
2020 FedEx Shipping Rate Changes
The effective date for the 2020 FedEx shipping rate changes is January 6, 2020. While not all specifics are available just yet, below is a summary to set expectations.
- FedEx Express package and freight standard list rates will increase an average of 4.9% for U.S., U.S. export and U.S. import services
- FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9%
- FedEx International Premium® rates will increase
- Minimum rates for FedEx Express services will increase
- FedEx Ground Multiweight® rates will increase
- FedEx SmartPost rates will increase
A 4.9% average increase has been about standard for what we’ve seen from FedEx over the past few years, so this shouldn’t come as much of a surprise to many who’ve been shipping FedEx for any substantial amount of time. While there aren’t any specifics yet, the popular FedEx One Rate service will also experience an change. As of this writing, there’s no indication of what that change will be.
Below is a preview of the upcoming FedEx Ground shipping rates. Click the image to view the entire pdf.
FedEx Freight rates will also see an increase at an average of 5.9%.
This article will be updated as more information comes out about the 2020 FedEx shipping rate changes, as well as when UPS announces their changes. Check back throughout the next few weeks to make sure you’re in the know.
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