Shipping Cost Spike: FedEx and UPS Update Additional Handling Charges
Last year, UPS and FedEx increased earnings by changing how they calculate dimensional weight. Instead of rounding down when the parcel’s measurement is less than 1/2 in., they began measuring up for every fraction.
It’s a new year, and the carriers have new tactics to earn more money from the same parcels. Today, we’re talking about how FedEx and UPS have updated their additional handling charges to include cubic volume and weight surcharges and how you can avoid paying a premium without any noticeable change in service.
FedEx Updated Additional Handling Charges
On January 12, FedEx quietly introduced a couple of changes that could significantly affect your monthly invoice.
Effective immediately, the FedEx Date Certain Home Delivery, FedEx Evening Home Delivery, and FedEx Appointment Home Delivery surcharges will be charged per package rather than per shipment. It may seem like consolidation is your friend here, but don’t increase your parcel size yet!
The second change is an update to the assessment criteria for FedEx’s Additional Handling Surcharge — Dimension and Oversize Charge. FedEx has added a cubic volume (length x width x height) criterion for the Additional Handling Surcharge — Dimension parcels, and a cubic volume and weight criterion for the Additional Handling Surcharge — Oversize parcels.
Here’s what you need to know:
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Any package with a cubic volume greater than 10,368 cubic inches is subject to a Dimension Charge of $29.50 to $40.75, depending on the zone.
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Any package with a cubic volume greater than 17,280 cubic inches and/or an actual weight greater than 110 pounds is subject to an Oversize Charge ranging from $255 to $330, depending on zone.
UPS Updated Additional Handling Charges
When FedEx makes a change, UPS isn’t far behind. Effective January 26, UPS has updated surcharges for its Large Package and Additional Handling services.
Here’s what you need to know:
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In addition to its current criteria for assessing Large Package surcharges (LPS), domestic packages over 17,280 cubic inches and/or weighing over 110 lbs will be subject to LPS. For domestic commercial packages, those surcharges range from $219.50 to $286, depending on the zone. For domestic residential packages, surcharges range from $254.50 to $331.
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Domestic Packages with a cubic size exceeding 10,368 cubic inches will now be subject to an additional handling surcharge of $30 to $40.50, depending on the zone.
How to Avoid Updated UPS and FedEx Charges
Published rates aren’t the only rates. While carriers update their surcharges, our team at ShipRx is busy negotiating on behalf of our clients behind the scenes.
If you want to reduce your surcharges and lower your contracted rates, get in touch with ShipRx. During a free Savings Analysis, our team will assess your current costs and contract terms and make suggestions for savings.
Don’t miss out on lower rates. UPS and FedEx contract negotiation can help you reduce your costs, no matter what new criteria the carriers introduce.