The Memphis, Tenn.-based parcel carrier has announced Christmas surcharges starting Nov 20, spurred by “old habits” and poor packaging processes by shippers, according to transport consultant Satish Jindel of SJ Consulting Group
FedEx is implementing Christmas surcharges to penalize “old habits,” according to transport consultant Satish Jindel, president of SJ Consulting Group in Pittsburgh.
Oversize packaging requires additional handling, thus opening doors for FedEx to impose surcharges, if shippers do not change their packaging habits.
FedEx has posted surcharges of $14 per package, an increase of $3, for U.S. express and international ground services. Ground unauthorized package charges have increased $300 to $415 per package, while oversize charges have increased $25 to $97.50 per package. The surcharges will be effective Nov. 20 through Dec. 24.
“Additional handling is totally within control of the shipper,” Jindel said in a statement to American Shipper. Shippers “can put that gallon can of paint or a tire in a brown box for $1 and avoid the $14 charge” and “they can avoid filling excess cube in a box with bubble wraps and foam peanuts by using a smaller box, and avoid the large package surcharge.
“The unauthorized package surcharge is for parcels weighing more than 150 pounds and more than 165 in length and girth,” he added. “FedEx does not want these packages, and if the shipper is negligent in not tendering such parcels to LTL carriers or companies like JB Hunt and XPO Last Mile service, they are responsible for incurring such surcharge. Do not give such packages to FedEx and avoid the surcharge.
“These kinds of parcels hurt FedEx’s ability to support huge volume increase in smaller parcels, and displacement of such parcels will allow FedEx to handle volumes spike and thereby avoid imposing surcharge on all residential deliveries, like UPS is doing,” Jindel explained.
FedEx last announced increased general shipping rates in late 2016, effective Jan. 2, which have been in effect throughout the year.
FedEx implementing holiday surcharge due to ‘old habits’
