FedEx rolls out pricier surcharges, new fees for 2024 peak season

 

FedEx announced 2024 peak season surcharges on Thursday that are costlier than last year and feature two new fees for shippers to navigate.

The increases start Sept. 30 for packages that are oversized, unauthorized or require additional handling. Then, on Oct. 28, demand surcharges take effect for shipments across various FedEx delivery services. The peak season fees end Jan. 19, 2025.

 

The peak season surcharges fall closely in line with rival UPS, save for slightly different dates in which they apply and minor pricing variations. Both companies' 2024 fees feature new charges that impact air and ground shipping services.

 

As in previous years, FedEx said the surcharges allow it to prepare for high demand and maintain strong service during the holiday shipping rush.

"We again anticipate the surge in volume to carry over into the new year," the company said.

 

The higher charges have historically helped the delivery giants increase revenue during the costly operating period which entails hiring seasonal workers and handling a surge in volume. FedEx Chief Commercial Officer Brie Carere said during a June earnings call that her company "is doing the very best in the market at getting peak surcharges."

 

"The team has done a really good job in getting the increase we need to deliver an amazing peak where we do have to expand capacity," Carere added.

Shippers have ways to mitigate the peak surcharges, ShipScience CEO Anthony Robinson said on LinkedIn. For example, they can incentivize consumers to shop early to avoid the highest surcharge periods, consider regional fulfillment options that reduce shipping distances and fees, or explore ship-to-store or local pickup options.

 

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