FedEx®, UPS® Surcharges for Peak Season Shipping in Effect
As parcel shipping heats up for the holidays, peak season surcharges (PSS) from FedEx and UPS are also on the rise. Both shipping companies have announced PSS, most of which will be effect through mid-January 2021.
The complexity of 2020 PSS favors carriers, so as a shipper, you must pay close attention to PSS calculations. We break down what you need to know and details of each shipper’s surcharges.
Peak Season is in effect for 67 business days in 2020, more days than exist in a typical business quarter, and a massive jump from 2018’s 23-day PSS. Savvy shippers should remember the almost tripled effect of PSS when their contracts are up for negotiation.
What FedEx Customers Need to Know
If you typically ship through FedEx, here is how you may be affected:
Shippers can potentially avoid paying some residential PSS if their volume is under 35,000 packages per week between Nov. 16-29, 2020.
SmartPost® surcharges range from $1-$2 per package, regardless of shipping volume.
Unauthorized packages will be charged $350 per package on top of the non-PSS $875 per package charge.
This applies to packages measuring more than 108” long, more than 165” in length and girth combined, and/or weighing more than 150 pounds.
FedEx PSS
Oversize Charge
Oct. 5, 2020-Jan. 17, 2021
U.S. Express & Ground Services and International Ground Services
$52.50
Oversize Charge
Oct. 5, 2020-Jan. 17, 2021
U.S. Express & Ground Services and International Ground Services
$52.50
Oversize Charge
Oct. 5, 2020-Jan. 17, 2021
U.S. Express & Ground Services and International Ground Services
$52.50
Peak Surcharge for FedEx SmartPost Package Services
Nov. 2-29, 2020
$1.00
Nov. 30-Dec. 6, 2020
$2.00
Dec. 7, 2020-Jan. 17, 2021
$1.00
What UPS Customers Need to Know
If you typically ship through UPS, this is what you need to know:
Residential PSS is back after being absent last year. It’s applicable for all subsequent weeks once a shipper exceeds 25,000 packages a week.
The Over Maximum surcharge is down from 2019, but the 2020 gross costs per package are about $1,000.
The Additional Handling Surcharge has gone up 35%, from $3.60 in 2019 to $5.00 in 2020.
UPS Ground Residential and SurePost® PSS are 30 cents for each through Nov. 14, 2020.
Other Charges
Through Jan. 16, 2021
Additional Handling
$5.00
Max limits
$250
Large Package: $50
Beat Carriers at Their Own Game
Complex Peak Season Surcharges are just one of many ways carriers drive up overall shipping costs. Contact ConData to learn how you can use shipment invoice data to lower specific shipping rates resulting in lowering total costs by 20% or more.
