FedEx follows UPS in adding pandemic surcharges

After UPS introduced pandemic surcharges on its parcel delivery business, FedEx followed suit this week. FedEx US domestic SmartPost, Express and Ground packages surcharges begin as of the coming Monday and will continue until further notice.

Where a shipper send more than 40,000 parcels a week or ships 120% of its weekly volume from a February baseline will have surcharges of around $0.30 per parcel imposed.

Where the shipper is sending a package of greater than 96 inches in length or 130 inches in length and girth will have a $30 surcharge imposed.

Last week UPS imposed slightly stiffer surcharges – where the volume exceeds 25,000 packages the charge will be imposed and the oversize parcel surcharge will be $31.45.

The difference in surcharging is unlikely to have a competitive impact as at these volumes there will be long term contracts involved. Those sending parcels are likely to have to just absorb the extra fees.

“As the impact of COVID-19 continues to generate a surge in residential deliveries and oversized items, the peak surcharges will help us manage the demand while maintaining strong levels of service for our customers,” a FedEx spokesperson said.

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