The higher charges starting in September fall closely in line with what rival UPS unveiled.
FedEx announced 2024 peak season surcharges on Thursday that are costlier than last year and feature two new fees for shippers to navigate.
The increases start Sept. 30 for packages that are oversized, unauthorized or require additional handling. Then, on Oct. 28, demand surcharges take effect for shipments across various FedEx delivery services. The peak season fees end Jan. 19, 2025.
The peak season surcharges fall closely in line with rival UPS, save for slightly different dates in which they apply and minor pricing variations. Both companies’ 2024 fees feature new charges that impact air and ground shipping services.
| Fee name | Services affected | Peak surcharge range per package | Effective dates |
| Additional Handling Surcharge | U.S. Package Services, FedEx International Ground shipments | $7.75 to $10 | Sept. 30 - Jan. 19, 2025 |
| Oversize Charge | U.S. Package Services, FedEx International Ground shipments | $84.50 to $100 | Sept. 30 - Jan. 19, 2025 |
| Ground Unauthorized Package Charge | FedEx Ground, FedEx Home Delivery and FedEx International Ground shipments | $450 to $500 | Sept. 30 - Jan. 19, 2025 |
| Demand Surcharge* | First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) | $1 to $2 | Oct. 28 - Jan. 19, 2025 |
| Demand Surcharge* | FedEx Ground residential shipments, FedEx Home Delivery residential shipments | $0.30 to $0.55 | Oct. 28 - Jan. 19, 2025 |
| Demand Surcharge | FedEx Ground Economy Package Services | $1.90 to $3.15 | Oct. 28 - Jan. 19, 2025 |
| Demand — Residential Delivery Charge** | Ground, Home Delivery, First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) | $1.45 to $8.25 | Oct. 28 - Jan. 19, 2025
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As in previous years, FedEx said the surcharges allow it to prepare for high demand and maintain strong service during the holiday shipping rush.
“We again anticipate the surge in volume to carry over into the new year,” the company said.
The higher charges have historically helped the delivery giants increase revenue during the costly operating period which entails hiring seasonal workers and handling a surge in volume. FedEx Chief Commercial Officer Brie Carere said during a June earnings call that her company “is doing the very best in the market at getting peak surcharges.”
“The team has done a really good job in getting the increase we need to deliver an amazing peak where we do have to expand capacity,” Carere added.
Shippers have ways to mitigate the peak surcharges, ShipScience CEO Anthony Robinson said on LinkedIn. For example, they can incentivize consumers to shop early to avoid the highest surcharge periods, consider regional fulfillment options that reduce shipping distances and fees, or explore ship-to-store or local pickup options.
Source: https://www.supplychaindive.com/news/fedex-2024-peak-season-holiday-surcharges-price/724385/
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