A number of FedEx's services will be impacted by their most recent surcharge announcement.
Effective June 21, 2021 – Peak Surcharges will increase and for some shippers, the increase will be stark.
See below for peak surcharge increase details.
According to FedEx’s official announcement, the Peak Residential Delivery Charge is increasing by 100% (from $0.30 to $0.60 per package) and will apply to customers who shipped more than an average of 30,000 packages weekly between January 4 – 31, 2021.
This date range is the “shipping history period” that FedEx is using to determine who will be locked into this surcharge increase indefinitely. FedEx also stated that they “reserve the right” to redefine the “shipping history period” at any time in the future. That means more shippers may be negatively affected in the future.
Also beginning in June 2021, the Peak Handling Surcharge will increase by 17% (from $3 to $3.50 per package) and the Peak Surcharge on all Ground Economy Packages (formerly SmartPost) will increase 25% (From $0.75 to $1 per package).
The timing of this recent announcement leads us to believe another increase is on the horizon.
FedEx customers may want to anticipate and plan for another peak residential surcharge increase before the end of the year. Based on recent history, we predict FedEx will most likely make an announcement before the Q4 peak holiday season (October – December).
You can use the Surcharge Summary perspective in your Lojistic account to manage and monitor the impact surcharges have on your overall shipping spend. Create a free Lojistic account today to manage and control your surcharges.
If you have any questions about FedEx’s Peak Surcharge announcement, don’t hesitate to reach out.
You can contact us by email at hello@lojistic.com or phone at (800) 783-5753. If you'd prefer to leave us a note, fill out this form, or if you'd like to book a meeting, grab some time on our calendar here.
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Author
Rich Harkey
Rich Harkey
Senior Strategy Manager
Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry.
As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.
Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.