Delivery

FedEx Joins UPS In Adding Delivery Fees Due To Volume Hike

It will cost more to send a FedEx package starting Monday (June 8).

The Tennessee-based shipping giant will add a 30-cent surcharge to packages delivered to homes via Express and Ground, according to a post on its website. The fee applies to large retailers and manufacturers who ship 40,000 or more packages per week.

There will also be an extra $30 charge to all oversized packages. FedEx defines oversized as any package that exceeds 96 inches in length or 130 inches in length and girth.

Additionally, 40 cents will be added to deliveries that use SmartPost, the service that uses the U.S. Postal Service to deliver packages to homes.

“As the impact of the virus continues to generate a surge in residential deliveries and has also generated a surge in oversize, hard-to-handle packages, we have experienced increased operating costs across our network,” FedEx said on its website.

A FedEx spokeswoman told The Wall Street Journal (WSJ) that “the peak surcharges will help us manage the demand while maintaining strong levels of service for our customers.”

Last week, PYMNTS reported that United Parcel Service Inc. (UPS) announced surcharges to offset rising costs and manage a surge of packages during the coronavirus pandemic. The surcharges will add an extra 30 cents to packages shipped via UPS Ground and SurePost. Another surcharge will add $31.45 for every large package shipped.

The new fees will either be absorbed by shippers or passed on to consumers through higher prices, WSJ reported

“Almost invariably, the merchant will eat the higher costs,” Rob Martinez, co-chief executive of Shipware LLC, a shipping strategy consultant and auditor, told the WSJ.

Also last week, PYMNTS reported some businesses have started to charge customers to help defray the costs of cleaning and disinfecting tied to battling the pandemic.

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