Friday the 13th proved unlucky for FedEx shippers, as FedEx announced numerous increases for the upcoming peak season and, for enterprise shippers, peak season residential surcharge increases that extend “until further notice” into 2022.
Effective October 4th, 2021 – January 16th 2022 for Express, Ground and International Ground:
- Peak Additional Handing: $5.95/package
- Peak Oversize: $62.50/package
- Peak Ground Unauthorized: $350.00/package
Peak Season Surcharges for Ground Economy packages (formerly SmartPost):
- Nov 1, 2021 – Nov 28, 2021: $1.50/package
- Nov 29, 2021 – Dec 12, 2021: $3.00/package
- Dec 13, 2021 – Jan 16, 2022: $1.50/package
Peak Season Residential for Express & Ground shipments:
- These charges apply from Nov 1, 2021 – Jan 16, 2022
- Apply to enterprise-level shippers
- Are based upon a Peaking factor based upon shippers who ship more than 25,000 residential and Ground Economy packages from Oct 4, 2021 – Oct 17, 2021 and apply the weeks of Nov 1, 2021 – Dec 12, 2021
- Also apply based upon Peaking factor based upon shippers who ship more than 25,000 residential and Ground Economy packages from Nov 15, 2021 – Nov 28, 2021 and apply the weeks of Dec 13, 2021 – Jan 16, 2022
- Percentages of increase are based on Feb 3, 2020 – Mar 1, 2020 volumes
- Fees range from $1.15 to $5.00 per package on Ground residential packages
- Fees range from $2.15 to $6.00 per package on Express residential packages
See the FedEx announcement for more detail
2022 Peak Season Residential for domestic residential Express & Ground surcharges:
- Begins effective January 17, 2022
- $0.60 per residential package
- Applies to enterprise shippers
- Is based upon the Peaking factors mentioned above
- Continues until further notice
While FedEx has thus far taken the lead with regard to UPS in terms of Peak Residential Surcharges that begin in 2022 and continue until further notice, it is likely that UPS will shortly follow suit.
While the increases between the two carriers can be very similar, there are fine nuances between the two with regard to when changes take effect, how they are calculated and the amounts charged. It’s imperative to dig into the details to see the impact per carrier and in any two-carrier scenarios, see if there are ways to reduce cost or at least minimize rating risk as we move through these incredibly volatile times.
If there are any questions about the market, strategy, utilization of regionals, calculations or anything else specific to your business or the parcel market, feel free to contact us at info@alexandrettaconsulting.com