Peak Surcharges are normally reserved for the holiday season. But this year, FedEx added peak surcharges during the COVID pandemic with seasonal adjustments (increases) for the holiday season. Now it will continue with this new trend of “off-season” surcharges in 2021.
The company explains this surcharge policy by saying, “The impact of the virus continues to generate a surge in volume, and we are experiencing extremely high demand for capacity and increased operating costs across our network this holiday peak season. We anticipate volume to continue to surge into the new year.”
Effective January 18, 2021 and until further notice, FedEx will apply the following surcharges:
- Oversize Surcharge: Applies to US Express Package Services, US Ground Services, International Ground Service – $30 per package.
- Additional Peak Handling Surcharge: Applies to US Express Package Services, US Ground Services, International Ground Service – $3 per package.
- Peak Surcharge: Applies to FedEx SmartPost Package Services – $0.75 per package.
The Oversize Surcharge usually applies to packages that exceed 96″ in length or 130″ in length and girth. There are other criteria that may apply as well that be found here.
The Additional Peak Handling surcharge typically applies to larger or heavier packages or non-standard packaging packages. For most shippers with regular boxed parcels under 50lbs or 48″ in length or 30″ along the second side, this surcharge will not apply. Exact details explaining the Additional Peak Handling surcharge can be found here.
The new good news is that the newly announced surcharges are a reduction of surcharges the company announced on August 18 and that are in effect for the 2020 holiday season period.
The concern among some observers is that FedEx and probably UPS, who is expected to make a similar announcement, are continuing to use the COVID pandemic to raise rates on some packages to increase the bottom line.
But with USPS being in turmoil during the holiday season as it is struggling to manage package volume, FedEx will be able to get away with surcharges, including the SmartPost surcharges relies on USPS for last-mile delivery.
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